There is good news for Yes Bank, a private sector bank stuck in crisis for a long time. RBI has approved American private equity companies Carlyle Group Inc and Advent International to jointly buy 20 per cent stake in Yes Bank.
There is good news for Yes Bank.
There is good news for Yes Bank, a private sector bank stuck in crisis for a long time. Actually, the Reserve Bank of India ie RBI has approved American private equity companies Carlyle Group Inc. and Advent International to jointly buy 20 percent stake in Yes Bank. This permission has been given with certain conditions. The private sector bank has given this information on Thursday.
Banks and investors will take final approval
Mumbai-based Yes Bank said investors are analyzing the terms. He further said that banks and investors will discuss with the Reserve Bank of India for early completion of the conditions and take the final approval. According to the Reuters report, it is not yet known what the conditions were.
According to the report, Carlyle, Advent, Yes Bank and RBI are yet to respond. Earlier, Yes Bank had said in July that it would raise $1.1 billion from Carlyle and Advent to acquire a 10-10 per cent stake in the bank. Companies want to increase the growth of their capital and funds. The funds will be raised by issuing shares worth $640 million and share warrants worth $475 million.
What is the Yes Bank crisis?
About two years before this, the RBI had come forward to take control of the bank. Former State Bank of India (SBI) chairman Rajnish Kumar had said last year that the crisis-hit Yes Bank is making good progress. He said the bank has made progress since investors led by State Bank of India took over its management last year and it will take two years to stabilize.
Let us tell you that Rana Kapoor, the former MD and CEO of Yes Bank, got a big relief from the Delhi High Court a few days ago. The court has granted bail to Rana Kapoor with certain conditions. The ED had arrested Rana Kapoor on charges of money laundering of Rs 466.51 crore. The ED alleges that Rana Kapoor disbursed loans to his family and relatives to benefit companies linked to them, causing a loss of Rs 466.51 crore to Yes Bank.