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TV18 Exclusive | Yes Bank at inflection point, right time to invest, says Advent's Shweta Jalan

Retail, SME finance and digital are "key drivers of growth" for Yes Bank, Shweta Jalan said.

July 30, 2022 / 08:00 AM IST
(Representative image)

(Representative image)

 
 
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Yes Bank is at an inflection point and its metrics have shown signs of improvement, Advent International said on July 29, shortly after it was announced that the private equity firm, along with Carlyle Group, would pick a 10 percent stake each in the private lender in lieu of a cumulative investment of $1.1 billion (Rs 8,900 crore).

The issue of non-performing assets (NPAs) for Yes Bank is "by and large behind it", Shweta Jalan, managing partner, Advent, said during an exclusive conversation with CNBC TV18.

This is the "right time to invest" in the bank as the "metrics have improved", Jalan added.

The lender had, notably, recorded a 50.2 percent on-year jump in net profit at Rs 311 crore for the quarter ended June 30, 2022. Its net interest income during the quarter jumped to Rs 1,850 crore, marking a 32 percent surge as compared to the same period of last fiscal.

"Yes Bank is at an inflection point," Jalan said, adding that retail, SME finance, and digital are "key drivers of growth" for the bank.

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"We are very excited about the banking sector in India. We feel investing in the banking sector is a surrogate play on betting on the economy of India," she further noted.

Advent will be applying for nomination on the board of Yes Bank as part of the deal, Jalan said, adding that the company will be looking for active board participation.

Earlier in the day, Yes Bank said the fund would be raised through a combination of around $640 million (Rs 5,100 crore) in equity shares and around $475 million (Rs 3,800 crore) through equity share warrants.

The capital raise plan is subject to shareholders’ approval at the extraordinary general meeting of the bank scheduled on August 24, 2022.
Moneycontrol News
first published: Jul 29, 2022 11:01 pm
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