Mumbai: Troubled private sector lender YES Bank is in advanced stage of capital raising from investors, including global tech majors, to grow the balance-sheet that has been consciously shrunk in recent months, says CEO Ravneet Gill.
The exercise will result in the new investor/s picking up stakes above the regulatory cap and the RBI will have to take a call on a "non-conventional" investor coming on board.
The mid-sized lender has been passing through a barrage of troubles since August last year when the RBI refused to give co-founder and chief executive Rana Kapoor a new term and instead asked him to leave the bank by January 31, 2019, governance lapses.
Gill said the new investor/s will be either a strategic partner like a tech company, or a financial investor or a deep-pocketed family office. A combination of the two is most likely to enter the bank soon, he said, choosing not to disclose the exact targets or timelines.
Thursday, the shares rallied 33% to Rs 42.55 on the BSE. The stock was trading at Rs 404 in August.