YES Bank to raise $1 billion via QIP

Private sector lender YES Bank plans to raise $1 billion (about Rs 6,885 crore) through QIP in the next seven months, for which, it has begun engagement with large investors across geographies.

“The QIP process should be over in the next 6-7 months, and we are actively meeting large investors across geographies,” YES Bank MD Rana Kapoor said.

The QIP would be fairly diversified, which would include even domestic investors, he said.

The bank is getting good response from the investors on the backdrop of robust first quarter, he said, adding that this momentum will be sustained going forward. YES Bank reported a 32.8% rise in net profit, to Rs 731.8 crore, during the first quarter ended June 30, compared with Rs 551.20 crore in the year-ago period.

The Cabinet Committee on Economic Affairs had approved YES Bank’s proposal in May, this year, to increase foreign investment limit to 74%, entailing FDI inflows of $1 billion. The mode of instruments includes qualified institutions placement of equity shares and/or issue of ADRs/GDRs and/or QFIs/FPIs under the portfolio investment scheme by acquisition of permissible securities on stock exchange.