Yes Bank is looking at private equity (PE) infusions to strengthen its balance sheet and improve investor outlook after being hit by loan losses and a downgrade in its ratings by ICRA and India Ratings, as per a Mint report.
The troubled lender is looking to bolster investor confidence after registering losses for the March quarter, the publication noted, adding that the bank, under new managing director and CEO Ravneet Gill, is also looking at other fund-raising options such as the sale of global depository receipts and foreign currency bonds.
Moneycontrol could not independently verify the report.
The idea of capital infusion is similar to a move made by Axis Bank, which completed an Rs 11,626 crore private equity fund infusion from Bain Capital and a clutch of affiliated entities, and the Life Insurance Corporation of India in December 2017.
Yes Bank on April 26, reported a reported quarterly loss of Rs 1,507 crore as compared to Rs 1,179.44 crore in the quarter ended March 2018 on the back of a spike in bad loans.
The Bank has identified bad assets and has made provision of Rs 3,661 crore for troubled loans, the Mint report added. NPAs of over Rs 3,480 crore were recognised by the bank.
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