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    Yes Bank board approves Rs 5,000 crore fundraising

    Yes Bank board approves Rs 5,000 crore fundraising

    Yes Bank board approves Rs 5,000 crore fundraising
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    By CNBC-TV18  IST (Updated)

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    The Yes Bank board on Thursday approved  up to Rs 5,000 crore additional fund raise over and above Rs 10,000 crore approval already in place (total Rs 15,000 crore).

    The Yes Bank board on Thursday approved  up to Rs 5,000 crore additional fund raise over and above Rs 10,000 crore approval already in place (total Rs 15,000 crore).
    "The Board, at its meeting today, has approved, subject to receipt of
    requisite approvals, raising of funds for an additional (in addition to Rs 10,000 Crores above) amount aggregating up to Rs. 5,000 Crores (Rupees Five Thousand Crores), the 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.
    This comes after the government notified the rescue plan drafted by the RBI under which State Bank of India would pick up around 49 percent equity in Yes Bank.
    Earlier, private lenders joined SBI to shield the private lender from a widespread crisis by injecting Rs 10,000 crore into the bank with SBI alone infusing Rs 6,050 crore.
    ICICI Bank and HDFC pumped in Rs 1,000 crore each, Kotak Mahindra Bank and Axis Bank Rs 600 crore each, Federal Bank and Bandhan Bank Rs 350 crore each and India First Bank Rs 250 crore.
    The bank also said that pursuant to the Yes Bank Reconstruction Scheme 2020, the office of the administrator of the bank, Prashant Kumar, "stands vacated".
    Kumar, a veteran ex-SBI official, assumed charge as bank''s RBI appointed administrator on March 5, 2020 as soon as the board was superseded, and was later on designated as the MD and CEO. With this, Kumar has become the head of the bank for the next three years.
    Yes Bank said the board of the bank has been reconstituted with effect from March 26, 2020 with a total of eight members including Kumar.
    The other board members include Sunil Mehta as the non- executive chairman, who also held the same position with PNB in the past; Mahesh Krishnamurti and Atul Bheda as non-executive directors; R Gandhi (former RBI deputy governor) as additional director appointed by the banking regulator and Ananth Narayan Gopalakrishnan as additional director appointed by RBI.
    Partha Pratim Sengupta and Swaminathan Janakiraman as directors nominated by SBI on the Yes Bank board.
    Shares of Yes Bank ended 10.27 percent down to Rs 26.65 on the BSE.
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