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Suspense crime, Digital Desk : Mumbai-based private lender Yes Bank has received approval from its board of directors to raise a substantial sum of up to ₹15,000 crore. This strategic move aims to strengthen the bank's financial foundation and support its ongoing growth initiatives.

The fundraising will be executed through a flexible combination of equity and debt instruments. For the equity component, Yes Bank is considering various avenues, including a Follow-on Public Offer (FPO), Qualified Institutional Placement (QIP), preferential allotment, rights issue, or other permissible modes.

On the debt side, the bank plans to issue instruments such as non-convertible debentures (NCDs), bonds (including Tier I/Tier II/subordinated debt), medium-term notes (MTNs), or potentially foreign currency bonds.

This comprehensive fundraising plan, approved by the board, is valid for one year. However, the actual issuance of securities will be subject to further necessary approvals, including nods from shareholders and relevant regulatory authorities like the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI).

While the board has given its in-principle approval for the overall amount, the specific timing, exact mix of equity versus debt, and the chosen instruments will be determined at a later stage based on market conditions and strategic requirements. This capital infusion is expected to enhance Yes Bank's capital adequacy ratio and provide the necessary resources for business expansion and to meet future capital needs.

The news of the board's approval was met with a positive, albeit modest, reaction in the stock market, with Yes Bank's shares seeing a slight uptick.


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