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4 PE players set to infuse capital in YES Bank; announcement soon

The sources said the consortium leader may pick a 10 per cent stake in the bank.

, ET Now|
Jul 15, 2019, 04.37 PM IST
Private lender YES Bank’s bid to bring in an equity investor is likely to materialise soon.

Sources said the bank received the term sheet offer over weekend from a US-based private equity investor. The offer is to buy stake worth $850 million in the bank. There are three more PE players in the consortium, two US-based and two domestic.

YES Bank shares witnessed a solid 5 per cent bounce in morning trade on Monday but later gave up the gains to close 1 per cent lower Rs 93.

The sources said the consortium leader may pick a 10 per cent stake in the bank, while the rest may together pick another 10 per cent.

One of the US-based PE investor is leading the consortium, and will pick the largest stake among the three. The sources said the bank is likely to make the announcement after June quarter earnings due on July 17.

The bank did not respond to queries sent by ETNOW to confirm the report.

Analysts tracking the bank closely say growth capital is the need of the hour for the private lender, assuming there are no further accident on its balance sheet. In the past, NPAs and provisions ate into profitability and also impacted valuations of the entity.
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