Yes Bank Board to consider fund raising
On Tuesday, the private lender Yes Bank informed the bourses that its board of directors will meet on Friday, 30th August 2019, to consider and approve raising of funds by way of issuance of equity shares. But the bank did not reveal the amount it wishes to raise. Recently, the bank has raised around Rs. 1930 crore through QIP.
If approved, then this fund raising will help the private bank to grow its business and also will help in increasing its tier 1 capital. However, the bank at present is sailing through high tides which have resulted in sharp fall in its stock price. Thus, this fund raising is likely to bring down its book value.
The stock of Yes Bank has tanked more than 83 per cent from its 52-week high of Rs. 387.70. The bank’s tough time started first when Yes Bank’s assessment of its NPAs resulted in large divergence as against the RBI’s audit report. The most recent setback that the bank witnessed was fraudulent activity found in CG power, in which it held around 13 per cent stake.
Meanwhile, the stock of Yes Bank in Wednesday’s session was trading in negative terrain. At 11.34 hours the stock was trading at Rs. 62.30 apiece on the BSE, down by 3.11 per cent from previous close.