Prashant Kumar
Prashant Kumar

NEW DELHI: "Cash starved private sector lender Yes Bank on Thursday approved a proposal to raise Rs 5,000 crore by way of share-sale, including qualified institutions and rights issue. The board meeting held on Thursday cleared this proposal.

With this the new board also came to the force with Prashant Kumar formally becoming the MD and CEO of Yes Bank. This fund raising will be over and above Rs 10,000 crore cleared in February 7, 2020 board meeting.

The board at its meeting has approved subject to receipt of requisite approvals, raising of funds for an additional amount aggregating up to Rs 5,000 crore, Yes Bank said in a regulatory filing.

The fund may be raised in one or more tranches by "way of issuance of securities but not limited to through a qualified institutions placement/ public issue, rights issue, global depository receipts, American depository receipts, foreign currency convertible bonds or any other permissible mode," it said.

So, in aggregate the fund raising cannot exceed Rs 15,000 crore, it added. Facing the collapse of the fourth largest private lender, the Reserve Bank sacked Yes Bank management and placed it under an administrator in the evening of 5 March with a 30-day moratorium which was later on curtailed to nearly two weeks.

Free Press Journal