Private sector lender YES Bank on Sunday said it will raise $1 billion (about Rs6,400 crore) by fresh equity and Rs10,000 crore through Non Convertible Debentures (NCDs) and bonds. The bank’s shareholders, at its Annual General Meeting (AGM) yesterday, also approved an increase in its borrowing limit to Rs50,000 crore, as also hiking the combined investment limit for FPIs and FIIs to 74 per cent.
The shareholders also approved the resolutions for re-appointment of Rana Kapoor as the Managing Director and CEO for a period of three years, the bank said. The reappointment was approved with unanimous majority (99.97 per cent) excluding the vote of the shareholder, Madhu Kapur family, it added.
The bank said that the shareholders’ approval was sought for capital raising, which was passed with an overwhelming majority, “in line with the bank’s vision of growing Yes Bank into a meaningful large Bank by 2020”, as also to further capitalise on the imminent revival in economic growth cycle.
“Shareholders have approved through special resolution to raise fresh equity aggregating up to $1 billion. The shareholders also approved through special resolution, the issuance of NCDs and bonds up to a total amount of Rs10,000 crore,” it added. Shareholders also approved through a special resolution, the increase in the borrowing limits of the bank to Rs50,000 crore (from the existing limits of Rs30,000 crore), it said.
Further to the recent Union Budget proposal, the bank had also sought approval to increase the combined Foreign Portfolio Investors (FPIs) and Foreign Institutional Investors (FIIs) investment limits to 74 per cent of the paid-up capital of the bank, the statement said.
Shareholders also approved a dividend payout of Rs 9 per share. Yes Bank said its shareholders approved re-appointment of M R Srinivasan (previously Chairman of Yes Bank) with an “overwhelming majority” as well as approved the appointments of Diwan Arun Nanda and Ajay Vohra as Independent Directors.
On June 5, Madhu Kapur, the widow of Yes Bank co-founder Ashok Kapur, moved the Bombay High court opposing a resolution, slated to come up at the annual general meeting of the Bank on June 6, appointing two directors on its board.
However, Yes Bank made a statement before the court assuring that the two directors -- Srinivasan and Nanda -- shall not assume office until the next hearing on June 17.