Mumbai: Yes Bank Board on Tuesday approved a proposal to collect RS 10,000 Crore through an edition of equity or instrument related to equity.
The bank said that it would now request approval from shareholders.
If the step is removed, it applies will be an extension of the current shareholder approval ending on February 8, 2022.
The private bank has said that it will aim to reduce its non-performance assets at the end of the financial year.
In an analyst call in October, Bank MD & CEO Prashant Kumar said that it would invest 20 percent in the reconstruction company of new assets that would obtain a bad bank loan.
Kumar told the analyst that there was adequate capital in terms of the general equity level (CET) at 11.5 percent and a total capital ratio of 17.6 percent.
Kumar said that many management bandwidth will be used for recovery and transferring bad loans will free management to focus on growth.
While increasing capital of strengthening bank fundamentals, a swell equity base makes it difficult to serve equity and produce returns for shareholders, especially when slow credit growth.
Yes the bank gets a nod to raise the equity of Rs 10,000 Crore
