Private sector lender Yes Bank is aiming to finish a USD 1.2 billion (about Rs 8,462 crore) equity raising exercise by December and willing to give new investors a board seat, according to a top official.
The bank, which has claimed that it is in discussions with potential suitors who are willing to pump in up to USD 3 billion (around Rs 21,156 crore) collectively, said it may raise the money either through the North American family office, which has made a binding offer to pump USD 1.2 billion, or through a combination of investors. The other investors include private equity funds, domestic mutual funds, domestic financial investors and also domestic family offices.
“We have to inform the North American family office by end of November. We will raise USD 1.2 billion by end of December and it may be either from them or a combination of investors,” its chief executive Ravneet Gill told a select group of reporters over the weekend.
He said the money raised will suffice the bank for two years, after considering its aim to expand the loan book to “high-teen” levels, Gill said, asserting that the asset quality issues are under check now.
The newly appointed head, who replaced promoter-chief executive Rana Kapoor whose conduct had raised RBI’s concerns, said the binding offer was received last Thursday over email and chose to disclose it to exchanges as it was advised that it was price sensitive. As part of the offer, the family office has also attached a letter from a major US bank with which it has a long relationship, affirming the former’s ability to pay the promised sum, Gill said.