Yes Bank announces mega fundraise of $1.1 billion — one of largest by a private bank

INTERVIEW | Yes Bank value driver from digital focus, branch network, says Carlyle

Both Carlyle and Advent International will have one nominee on the bank's board following the transaction. The capital raise is subject to shareholders’ approval at the EGM of the bank to be held on August 24, 2022, and relevant regulatory or statutory approvals.

The capital raise will further bolster the capital adequacy of Yes Bank and aid the bank’s medium to long-term sustainable growth objectives.

Prashant Kumar, Managing Director & Chief Executive Officer of Yes Bank, said, “We are extremely pleased to onboard such pedigreed investors like Carlyle and Advent International as our partners, in fulfilling the long-term strategy of the bank.

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Sunil Kaul, managing director and Financial Services Sector Lead for Carlyle in Asia, said, "We are confident about India’s long-term economic growth prospects and believe that Yes Bank is well-placed to capture this growth, given its strong capabilities in transaction banking and digital payments."

Shweta Jalan, Managing Partner, Advent International said, "We believe India's banking sector is at an inflection point where tech-enabled banks like Yes Bank have an advantage."

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Yes Bank is advised by BofA Securities as an exclusive financial adviser and AZB & Partners as a legal advisor, while Carlyle was advised by Shardul Amarchand Mangaldas (SAM) and Advent was advised by Cyril Amarchand Mangaldas (CAM).

As per the Foreign Exchange Management rules, a minimum purchase of 10 percent stake is required to qualify as FDI.

Shares of Yes Bank ended at Rs 14.94, up by Rs 0.36, or 2.47 percent on the BSE.