Yes Bank gets RBI letters, gears up to engage with CA Basque Investments, Verventa

Yes Bank | CMP: Rs 17.50 | The scrip added over 2 percent after the private sector lender said that its planned stake sale to Carlyle Group and Advent International has received conditional approval from the Reserve Bank of India.

Private sector lender Yes Bank on December 9 said it has received two letters from the Reserve Bank of India pertaining to its deals with CA Basque Investments and Verventa Holdings Limited.

The bank plans to engage with the investors to complete its fund raising. “Pursuant to this, the bank shall now engage with the investors for the completion of the proposed capital raise, subject to various regulatory compliances and conditions precedent as per the respective investment agreements,” Yes Bank said.

In July 2022, YES Bank had announced raising equity capital worth $1.1 billion (Rs 8,900 crore) through funds affiliated to global private equity investors Carlyle and Advent International. Each investor would potentially acquire up to 10 per cent, YES Bank had said.

YES Bank’s asset quality profile in the July-September cycle improved with gross non-performing assets (GNPAs) at 12.9 percent compared to 15 percent a year ago. The bank’s net NPAs dipped to 3.6 percent from 5.5 per cent a year ago.

Its provisions, including for stressed assets, rose 54.4 percent y-o-y to Rs 583 crore in Q2FY23. The provision coverage ratio rose to 84 per cent for the quarter under review from 78.9 percent a year ago.

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