Yes Bank on Wednesday said it has raised Rs 1,930.46 crore through qualified institutional placement (QIP) to fund its business expansion. The QIP opened on August 9 and closed on Wednesday, the bank said in a regulatory filing.
With respect to the issue, it said the bank approved the issue price of Rs 83.55, including a share premium of Rs 81.55 per share which is at a discount of 4.95 percent to the floor price of Rs 87.90 per equity.
The bank offered 23.10 crore shares aggregating to 9.96 per cent of the share capital as against a limit of 10 per cent of pre-issue share capital as approved by the shareholders, it said.
In July, Icra has downgraded Yes Bank's long term ratings, "Rating downgrade factors in the increase in stress, as reflected by a rise in BB- and below-rated exposures and fresh slippages, as well as lack of any resolutions."
Yes Bank's gross NPAs and below investment grade loans zoomed to Rs 41,558 crore ion the June quarter from Rs 30,772 crore in March. After provisions, net BB-and below-rated exposures and net NPAs stood at Rs 34,082 crore in the June quarter compared to Rs 24,741 crore in March.
Going forward, credit provisioning is expected to remain high, which will translate into a "moderation in earnings", the agency warned.
Already, the bank, under new chief executive and managing director Ravneet Gill, who succeeded promoter-chief executive Rana Kapoor, who was asked by RBI to leave by January for lapses on the governance front, has shown a massive dent in earnings for two successive quarters.
The bank had reported its maiden loss of Rs 1,506 crore in March quarter and but managed to return to the black in the June quarter with a paltry Rs 96 crore of net income, which was down a massive 92 percent."Given the sizeable stressed exposure in relation to the equity capital, the accelerated resolution of these exposures would remain a key rating concern. The inability to reduce the stressed exposure book or a further increase in the same will remain a rating negative," the report warned.