Yes Bank board approves plan to raise Rs 10,000 cr via debt

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The board of directors of Yes Bank, in its meeting today, has approved a plan to raise funds up to Rs 10,000 crore by issue of debt securities including non-convertible debentures, bonds, medium term  note  (MTN), etc.

“The Board of Directors of the Bank in its meeting held on June 10, 2021, have considered and approved the seeking shareholders’ approval for borrowing/raising funds in Indian/foreign currency up to an amount of ?10,000 crore by issue of debt securities including but not limited to non-convertible debentures, bonds, Medium Term Notes, etc,” YES Bank said in a regulatory filing.

Yes Bank shares closed 3.03 per cent up at Rs 14.64 apiece on the BSE on Thursday. The share traded higher than 5 day, 20 day and 50 day moving averages but lower than 100 day and 200 day moving averages. The stock has fallen 18.48% since the beginning of this year and  lost 52.48% in one year.

In Q4 of last fiscal, the private sector lender posted a whopping standalone net loss of Rs 3,788 crore due to a fall in income and jump in provisions for bad loans. The bank had reported a loss of Rs 3,668 crore in the same period last year. However, due to the exceptional write back of Rs 6,296.94 crore, the bank’s bottomline turned positive at Rs 2,628.61 crore during January-March period of 2019-20.

During the quarter, total income declined to Rs 4,805.30 crore from Rs 5,818.59 crore in the same period a year ago. Provisions (other than tax expense) and contingencies rose to Rs 5,239.59 crore as compared to Rs 4,872.34 crore.

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On the asset front, the bank’s gross non-performing assets (NPAs) as of March 31, 2021 stood at 15.41 per cent of the gross advances, slightly down from 16.80 per cent in the year-ago period. However, net NPAs rose to 5.88 per cent from 5.03 per cent in the year-ago period.

For the full 2020-21 fiscal, the bank narrowed its net loss to Rs 3,462.23 crore from a loss as high as Rs 16,418.02 crore in the previous year.