Yes Bank Ltd. on Friday said it is in discussions with investors who are willing to pump in more than $3 billion in the private sector lender.
This, after the Ravneet Gill-led bank disclosed a Rs 600 crore loss in September quarter due to a one-time tax adjustment. On Thursday, Yes Bank said it has received a $1.2 billion binding offer for stake sale to a global investor.
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The bank's capital adequacy has dipped in the last few quarters, as it has been forced to provide for accelerated recognition of bad assets under Gill, who replaced Founder Promoter Rana Kapoor as the chief executive officer in June.
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On Friday evening, after the Yes Bank results, Gill said the private lender has received a binding offer from a multi-billion-dollar North America-based family office that has never invested in India.
Yes Bank is also in discussions to raise $1.6 billion from a clutch of six global private equity funds and two domestic mutual funds. Talks are on to raise a further $300 million from two groups of domestic investors, including 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, adding that the bank may opt for either a single investor or multiple investors participating in the fundraising.
Yes Bank needs the money quickly, he said, hinting that two tech investors that the lender 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 come in, he said.
Gill said the bank disclosed the $1.2 billion binding offer on Thursday because it found it to be price sensitive, and added that both the market and banking regulators are in the loop.
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