Yes Bank to Plan $1 Billion Share Sale in Public Offering

(Bloomberg) -- Yes Bank Ltd. is planning to raise at least 80 billion rupees ($1 billion) in a public offering of shares to boost its capital, according to people familiar with the matter.

The bank, which counts two of India’s largest lenders State Bank of India and HDFC Ltd. as its investors, will kick off the fundraising soon, the people said. That could help Yes Bank raise its Tier-1 core capital ratio to around 10%, from 6.3% as of end-March, said the people, who asked not to be identified as the information is private.

A share sale would follow Yes Bank’s regulatory application to fast-track its capital raising after the lender’s stock rebounded 73% since the Reserve Bank of India rescued it in March.

Yes Bank, which received 100 billion rupees of capital infusion from eight local lenders led by State Bank of India, can issue instruments including shares or convertible bonds, it said in a filing in March. Its Chief Executive Officer Prashant Kumar had said the bank plans to raise 150 billion rupees to boost its financial strength.

Deliberations are ongoing and details of the fundraising could still change, the people said. A representative for Yes Bank didn’t immediately respond to comment.

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