Yes Bank raises Rs 3,500cr from sale of certificate of deposits to two PSU banks: Report

Troubled private sector lender Yes Bank has successfully raised Rs 3,500 crore on March 31 via certificates of deposits of nearly six-month maturity, as per a report by The Economic Times.

“Two large public sector banks” “flush with liquidity” are subscribers to Yes Bank’s CDs and the process was completed within three working days,” as per sources quoted in the report.

Yes Bank likely offered an interest rate of 8.25 percent on its CDs. Crisil on March 19 had assigned an A2 rating to the bank’s Rs 20,000 crore money market instrument, the report added.

Moneycontrol could not independently verify the report.CD rates were down by 275 basis points since March 26 after the Reserve Bank of India (RBI) infused Rs 3.74 lakh crore into the economy.

Yes Bank did not respond to queries as per the report.

The bank on March 26 said its board has approved a proposal to raise up to Rs 5,000 crore.

The private lender informed the exchanges that it will raise the additional amount through shares, ADRs, GDRs or convertible bonds and it will be done in one or more tranches.

Yes Bank had earlier raised Rs 10,000 crore from the State Bank of India (SBI) and other banks and financial institutions through the sale of equity under its reconstruction plan approved by the government and the Reserve Bank of India (RBI).

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