Corporate Debt Restructuring Masterclass

18 July 2022 (Mon), 5pm Singapore/HK time

Yes Bank plans to raise around $1bn in the current financial year in an effort to strengthen its capital ratios. Its Managing Director Prashant Kumar said that Yes Bank has a CET1 ratio of 11.5% which would suffice for its growth targets during the current financial year. However, they would like to have a buffer due to uncertainties that persist. He added that the bank will be compared to other peer banks when being given a rating and thus, raising $1bn will allow it to raise its CET1 ratio to 14.5%, roughly in-line with that of peers at 14-15%. He added that the lender is in the final stages of selecting a “right partner” for its asset reconstruction company (ARC) to resolve its NPAs. ET cites Prashant Kumar adding that SBI is ‘not averse to giving up a board seat if valuations offered are lucrative’. SBI holds about 49% of the lender after Yes Bank’s fiasco in early 2020.

Yes Bank’s 3.75% 2023s were trading flat at 98.63, yielding 5.77%.

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