Yes Bank in talks with investors willing to pump in $3 billion in capital

Yes Bank Friday said that it is holding discussions with investors to raise around $3 billion in capital in the private sector lender.

The bank had revealed on Thursday that one of the investors it was in talks with for a $1.2 billion capital investment was a family office in the US.

The capital adequacy of the private lender has plunged in the last few quarters due to accelerated recognition of non-performing assets (NPAs) under its new managing director and chief executive officer, Ravneet Gill.

Also Read: YES Bank share price falls over 4% ahead of Q2 earnings

Gill, who replaced promoter-chief executive Rana Kapoor, said the bank has received a binding bid from the North America-based family office that has never invested in India and has a net worth of multi-billion.

Apart from that, the bank is in discussions to raise $1.6 billion from a clutch of six global private equity funds and two domestic mutual funds, he told reporters.

It is also in touch with two groups of domestic investors to raise $300 million, he said, adding that this includes 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.

Also Read: YES Bank Q2 results: YES Bank posts Rs 600 crore net loss in Q2; asset quality declines

He said the bank may opt for either a single investor or multiple investors participating in the fundraise.

The bank needs the money quickly, he said, hinting that two tech investors that the bank is speaking with may not participate immediately.

Its common equity tier-I capital buffer will go up by 2.60 per cent over the 8.7 per cent in September 2019 if the $1.2 billion funds 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 Sebi and RBI are in the loop.

Also Read: YES Bank group president and former chief financial officer Rajat Monga quits

(With PTI inputs.)