The board of Yes Bank is considering a plan to raise fund via share sale, at a meeting on July 29. The lender may consider proposals by PE players regarding investment, according to sources who spoke to CNBC-TV18.
It is also leant that Carlyle and Advent are eyeing up to 10% stake each, and nomination on board, as part of the funding proposal. All concerned parties have declined to comment regarding the proposals. The street is pricing in action in anticipation of a deal, with the share price rising nearly 20 per cent in last one month, outpacing the banking index and Sensex.
Earlier this week, the lender's Managing Director & CEO Pashant Kumar told Moneycontrol, that the bank will “definitely” raise $1 billion during the current fiscal. He added that the timing of capital raise will not impact bank’s loan growth target.
Yes Bank clocked a 50 per cent year-on year (YoY) rise in its net profit for the quarter ended June at Rs 311 crore.The lender has finalised a new board with the approval of the shareholders, effective July 15. The new board also recommended extending MD and CEO Prashant Kumar’s tenure for three years, subject to RBI's approval. The board now consists of six independent directors, two nonindependent directors and the MD and CEO. The lender also approved the appointment of former RBI deputy governor R Gandhi on its board as an additional independent director.