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Last Updated : Nov 02, 2019 01:46 PM IST | Source: Moneycontrol.com

Yes Bank says offer worth $3 billion on table

The bank, on October 31, had disclosed that it is in touch with a family office in the US to raise $1.2 billion to shore up its capital.

 
 
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Investors are in discussion with Yes Bank to pump in capital of around $3 billion, the bank said on November 1.

The bank had disclosed that one of the investors in discussion for $1.2 billion capital is a family office in the US.

The capital adequacy ratio of the bank has dipped in the last few quarters due to the accelerated recognition of non-performing assets(NPAs) under chief executive, Ravneet Gill.

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Gill said the bank has received a binding bid from the multi-billion North America-based family office that has never invested in India.

The bank is also in discussions to raise $1.6 billion from a clutch of six global private equity funds and two domestic mutual funds, as per Gill.

Apart from that, it is in touch with two groups of domestic investors to raise $300 million, he said, adding that this includes two family offices and two financial investors.

"We have $3 billion of potential money which can come in and will be looking at all the options with an open mind," Gill said.

He said the bank may opt for either a single investor or multiple investors participating in the fundraiser.

The bank needs the money quickly, he said, hinting that two tech investors that the bank is speaking with may not participate immediately.

Its common equity tier-I capital buffer will go up by 2.60 percent over the 8.7 percent in September 2019 if the $1.2 billion funds come in, he added.

Gill had replaced the promoter-chief executive Rana Kapoor early this year.

Gill said the bank disclosed the $1.2 billion binding offer on October 31 because it found it to be price-sensitive, and added that both market regulator, SEBI, and RBI are in the loop.

 (With inputs from PTI)

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First Published on Nov 2, 2019 07:50 am
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