Yes Bank, has received an offer from a global investor for an investment of US$ 1.2 Billion in the Bank. This has been communicated by the bank in a statement to the exchanges.
In their statement on their capital raising plans, earlier in September 2019, the bank had mentioned that the Bank had received strong interest from multiple foreign as well as domestic private equity and strategic investors. The bank has been on look out to raise growth capital for some time.
The bank has confirmed on their receiving a binding offer from a global investor through fresh issuance of equity share, subject to regulatory approvals, approval from share holders and the banks board.
Rana Kapoor, Founder, Yes Bank and the person who was key to growing the bank into India’s fastest-growing bank and lender had to exit from his executive role, considering issues faced by the bank on reporting of bad debts. Ravneet Gill, from Deutsche Bank AG had taken over as MD & CEO in March 2019, with his priority being to stabilize business operations. He has been working towards raising capital.
With falling reputation, and falling stock market performance ( the stock has seen a dip of over 70 % this year.), the company has also faced issues of senior executives exiting and had recently announced aggressive salary hike, bonuses for mid and senior executives. The company has also been aggressive on hiring for top roles.
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