Yes Bank has received approval from its board to raise ₹16,000 Crores through a mix of equity and debt. This decision is part of the bank's efforts to fuel business growth and strengthen its financial base.
Fundraising Target: The bank plans to raise ₹16,000 Crores in total.
Equity Capital: ₹7,500 Crores will be raised through equity capital.
Debt Capital: ₹8,500 Crores will be raised through debt instruments.
Phased Approach: The funds will be raised in multiple phases from both domestic and international markets.
| Component |
Amount |
Method |
|---|---|---|
| Equity Capital |
₹7,500 Crores |
Issuing equity securities (Various methods) |
| Debt Capital |
₹8,500 Crores |
Debt instruments (Indian/foreign currency) |
| Total Fundraising Target |
₹16,000 Crores |
Combined equity and debt raise in multiple phases |
The table highlights Yes Bank's approach to its major fundraising initiative, detailing the breakdown of equity and debt capital.
Equity Dilution: The total equity dilution, including the conversion of approved convertible debt, will be limited to 10%.
Changes to Articles of Association: As part of the fundraising process, Yes Bank’s board has approved amendments to the Articles of Association. These amendments include provisions about director nominations.
SMBC (Suimoto Mitsui Banking Corporation) and SBI Representation:
SMBC can nominate two non-executive, non-independent directors if their stake remains above 10%.
SBI can nominate one non-executive, non-independent director if its stake stays above 5%.
Termination of Rights: These nomination rights will expire if the stake of SMBC or SBI falls below the prescribed thresholds.
This fundraising initiative is linked to a share purchase agreement signed on May 9, 2025, between Yes Bank, Sumitomo Mitsui Banking Corporation (SMBC), and State Bank of India (SBI). As part of this deal, SBI and other lenders plan to sell a 20% stake in Yes Bank to SMBC for ₹13,483 Crores.
Yes Bank’s approval to raise ₹16,000 Crores is a step toward business expansion and strengthening its capital structure. With a mix of equity and debt raising, the bank aims to tap into both domestic and international markets. The changes to the Articles of Association and the involvement of SMBC and SBI signal potential shifts in the bank’s governance structure, further enhancing its prospects.
This content is for informational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.
Sources
Business Standard — Yes Bank’s Fundraising Approval and Strategic Plans, https://www.business-standard.com/
Economic Times — Yes Bank Approves Major Fundraising, https://economictimes.indiatimes.com/
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