Yes Bank secures board approval to raise Rs 15,000 crore in equity and debt capital

Synopsis

Yes Bank's board has approved a plan to raise funds. The bank aims to secure ₹7,500 crore through equity and ₹8,500 crore via debt instruments in fiscal year 2026. This fundraising will occur in stages, both domestically and internationally. Sumitomo Mitsui Banking Corporation will increase its stake in Yes Bank.

Mumbai: Yes Bank announced late Tuesday its board has approved raising up to ₹7,500 crore in equity capital and ₹8,500 crore through debt instruments during FY26. The fundraising will be executed in multiple tranches, both in domestic and international markets.

In a regulatory filing, the private sector lender stated that the equity capital will be raised through various permissible instruments, ensuring that the total dilution does not exceed 10%.

The board has also cleared a resolution to raise debt capital via instruments denominated in Indian or foreign currency, totaling ₹8,500 crore.

To support its strategic agreement with Japan's Sumitomo Mitsui Banking Corporation (SMBC), the bank will amend its Articles of Association. An approval to raise fresh equity will enable SMBC to infuse new capital in the bank and raise its stake. SMBC signed a definitive agreement on May 9 to acquire a 20% stake in Yes Bank for ₹13,483 crore through a secondary market transaction.

As part of the agreement, SMBC will receive pro-rata pre-emptive rights to subscribe to future equity issuances by Yes Bank to maintain its stake. It will also be entitled to nominate two non-executive and non-independent directors to the board. State Bank of India (SBI), a key stakeholder, will retain the right to appoint one nominee director.

Yes Bank last raised ₹15,000 crore in July 2020 through a follow-on public offer. In March 2022, the bank secured ₹8,887 crore from global private equity firms Carlyle and Advent International by issuing shares on a preferential basis. Both investors acquired a 9.99% stake in the bank.

At the end of March 2025, Yes Bank had a common equity tier 1 (CET1) ratio of 13.5% while its capital adequacy ratio stood at 15.6%.

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