On Friday evening, Yes Bank chief executive Ravneet Gill said that the bank has non-binding offers from two domestic mutual funds, six global private equity firms, two Indian financial investors and two Indian family offices. While the two domestic MFs and global PE firms have made an offer of $1.5 billion, the offer from four Indian investors is about $350 million.
The bank hopes to close the fund-raise before December, he added.
The proposed capital infusion, the bank would not require capital for the next two years, growing at a high-teen rate, said Gill. The bank which reported a common equity tier 1 (CET1) ratio of 8.7% in the September quarter of FY19 will see an around 260 basis point (bps) jump in capital adequacy ratio following the proposed infusion.
Last week, Yes Bank reported a net loss of ₹600 crore for the three months to September primarily owing to a one-time deferred-tax asset (DTA) adjustment of ₹709 crore.
The bank had posted a net profit of ₹965 crore in the same period last year. The bank’s loss was higher than ₹402 crore estimated by a Bloomberg consensus estimate of 17 analysts. Even without DTA adjustment, the bank’s operating performance was weaker than the same period last year.