Yes Bank board to consider fundraising plan later this week

Yes Bank on Monday said its board will consider a proposal to raise funds via equity and bonds, at its meeting later this week. “The meeting of the board of directors of Yes Bank Ltd is scheduled for Thursday, March 26, 2020, at Mumbai to consider, amongst other agenda items, […]

Yes Bank on Monday said its board will consider a proposal to raise funds via equity and bonds, at its meeting later this week. “The meeting of the board of directors of Yes Bank Ltd is scheduled for Thursday, March 26, 2020, at Mumbai to consider, amongst other agenda items, a proposal for raising funds by issue of equity shares/ depository receipts/ convertible bonds/ debentures/ warrants/ any other equity-linked securities, through permissible modes,” it said in a BSE filing.

The fundraising plan will also include a qualified institutions placement, rights issue, and further public offer, among others, subject to such approvals, the bank added.

The lender has already raised over Rs 10,000 crore from SBI and other key banks and financial institutions through sale of equity under its reconstruction plan approved by the government and the Reserve Bank of India (RBI).

Additionally, the RBI has also extended a Rs 60,000-crore credit line to Yes Bank for meeting obligations, as per sources.

According to Section 17 of the Reserve Bank of India Act, 1934, the central bank can provide liquidity support to any lender in the form of loans and advances against collateral such as stocks, funds and securities (other than immovable property) in which a trustee is authorised to invest trust money by an Act of Parliament.

According to the sources, the RBI’s assessment found that Yes Bank had liquidity issues but no solvency problem or any other issue. The line of credit, however, is first such exercise by the central bank.

After witnessing decent recovery since the RBI superseding its board and planning out the reconstruction scheme, the stock of the bank closed over 13 per cent down at Rs 39.75 apiece on the BSE due to the coronavirus pandemic gripping the markets globally.

Source Article

Lois C. Ferrara

Next Post

India coronavirus news: India coronavirus count on Monday: Well over 400 infected, more and more states lock down

Mon Mar 23 , 2020
In line with predictions that infections will rise rapidly after a slow first few weeks, India’s coronavirus count today crossed the 400 mark, data from the Union Health Ministry showed. The official count of the infected stood at 433 at the end of day, and the dead at seven. 24 […]

Tags

TL