Yes Bank Loses 6% In Two Days; Bank Approaches AMCs For Fund Raising

Shares of Yes Bank continue their losing streak and is the top loser on the Nifty on March 4, 2020 with day's losses of as much as 5% to Rs. 29.60 on the NSE.

Yes Bank Loses 6% In Two Days; Bank Approaches AMCs For Fund Raising

After the RBI suggested that it is mulling a plan for the beleaguered private sector lender which despite its strong brand equity has failed to raise capital for quite a while now. Yes Bank as per a leading business dailies report has now approached mutual fund houses to raise capital to the tune of $300-$500 million.

So, if the discussion with domestic AMCs materialize, the banker will get a slight breather, nonetheless it will still have to work on raising additional funds at a time when there is huge stress on the bank's loan book as well as it faced a series of downgrades.

Yes Bank aimed to raise a total of $ 2billion.

Also, the private lender deffered its unaudited financial results for the quarter and nine month period ending December 31, 2019 to on or before March 14, 2020 as much of the lender's time was consumed in the process of capital raising.

Further, though the bank has announced that it has received interest for capital raising from potential bidders. Some of the parameters around it such as timing, quiantum and other conditions of the proposed infusion remain as key monitorables.

Also, given the limited scope of recoveries for the bank, there is seen to be more of stress in company's balance sheet.

In the previous session also the stock of Yes Bank lost as much as 1%. Last the stock of Yes Bank traded at Rs. 30.20, down 3.36% or Rs. 1.05.

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