Yes Bank is on the verge of raising INR 5000 Cr in share-sale to strengthen the capital. Private equity & other lenders joined SBI to protect the banking sector from the crisis.

Yes bank which was under cash crisis has approved plans to raise INR 5,000 crore (USD 666 million) in share sale after it was bailed-out by the SBI-led consortium of lenders following a bad loan surge that eroded its capital.

The bank and its cash starved scenario has been a major talk since a couple of weeks. While the entity’s collapse pushed its status down to a large extent. Slowly it is getting away with the crisis as many private entities are pitching in for the rescue.

As we know, The Indian government had seized control of this fourth-largest private bank as it organized a bailout plan and temporarily limited how much depositors can withdraw. Also, the country’s biggest lender, SBI, planned to head a consortium to pump new capital into Yes Bank, which had been struggling to offset a surge in bad loans.

The bank's board has approved plans to raise funds of an additional amount aggregating up to INR 5,000 crores,” the bank said in a regulatory filing.

It further stated, “The bank will raise the additional amount by way of issuing securities but not limited to through a qualified institutions placement/public issue/rights issue/global depository receipts/American depository receipts/foreign currency convertible bonds or any other permissible mode.”

Many are interested in the rescue plan including JC Flowers, HDFC, ICICI, Kotak Mahindra, Federal Bank, Bandhan Bank, and others.

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