Yes Bank EGM underway: Find out what is on the agenda
The bank says that it is raising this capital to meet the growing requirements of its expanding business, to invest in technology, human capital and infrastructure, and because it also envisages significant lending opportunities.
Yes Bank is holding an extra-ordinary general meeting (EGM) today to approve its capital raising plans. On the January 10th, the board had approved a modified capital raising plan of Rs 10,000 crore via a mix of debt and equity, which it plans to do in one or more tranches.
On the agenda today, besides approval of this capital raising plan is also to increase the authorised share capital from Rs 800 crore to Rs 11,000 crore, which will then be divided into 450 equity shares of Rs 2 each and about Rs 2 crore preference shares of Rs 100 each, reports CNBC-TV18.
The bank says that it is raising this capital to meet the growing requirements of its expanding business, to invest in technology, human capital and infrastructure, and because it also envisages significant lending opportunities.
But most important of all is to meet the RBI’s minimum capital requirement norm which for the bank has eroded significantly. Therefore the capital raising is going to be very critical for the bank.
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