- Yes Bank board approved raising up to Rs 16,000 crore via equity and debt issuance
- The bank plans to raise Rs 7,500 crore through equity, pending approvals from shareholders
- Up to Rs 8,500 crore will be raised through debt securities in Indian or foreign currency
Yes Bank's board has approved a fundraising plan of up to Rs 16,000 crore through a combination of equity and debt issuances, as the private sector lender prepares to strengthen its capital base.
The bank will raise up to Rs 7,500 crore through the issuance of eligible equity securities, subject to shareholder and regulatory approvals. The board has also approved raising up to Rs 8,500 crore through debt securities in Indian or foreign currency, which may be issued in one or more tranches, according to an exchange filing on Monday.
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The fundraising proposal will be placed before shareholders at the bank's 22nd annual general meeting scheduled for August 19, 2026.
The capital-raising plan comes weeks after Yes Bank announced a strategic investment deal with Japan's Sumitomo Mitsui Banking Corporation (SMBC), which will acquire a 20% stake in the lender from existing shareholders.
Under the transaction, State Bank of India (SBI) will sell its 13.19% stake for nearly Rs 8,890 crore, while other participating lenders, including HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, IDFC First Bank, Federal Bank and Bandhan Bank, will collectively divest their holdings.
The deal is expected to make SMBC the largest shareholder in Yes Bank, followed by SBI. The Japanese lender will also get the right to nominate two non-executive directors, subject to regulatory approvals.
Yes Bank has said the partnership could support improvements in credit profile, governance standards and strategic growth. Shares of Yes Bank fell around 10% on Tuesday to close at Rs 20.95 on the NSE.
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