Yes Bank shares surged in early deals on Friday as the private-sector lender is poised to release details of a fund-raising plan. At 10: 44 am, shares traded 4.7% higher at ₹72.15, having more than doubled since 1 October.
Yes Bank, India’s fourth largest private sector lender, on Thursday, after market hours informed the exchanges that its board is scheduled to meet on Friday to consider and approve raising of funds by issue of equity, equity linked securities.
Yes Bank aims to raise about $1.2 billion in capital and says it has received offers from bidders including an unnamed North American family office.
With exposure to several troubled shadow banks, real estate firms and stressed companies, Yes Bank’s bad loans have risen sharply, forcing it to step up provisioning and eroding its capital. The lender’s core equity capital is 8.70%, barely above the regulatory minimum of about 8%.
The lender reported a net loss of ₹600 crore for the quarter ended September, hurt by a one-time deferred tax adjustment of ₹709 crore on account of change in the corporate tax rate structure. Yes Bank had reported a net profit of ₹964 crore profit for the corresponding quarter previous year.