Yes bank board gave approval to 10000 crore, but reject Braich’s $1.2 bn offer

The board of private lender Yes Bank met on Friday and approved raising of funds of up to ₹10,000 crore in one or more tranches through a qualified institutional placement (QIP), or any other private placement of equity or debt, the bank said.

On 30 November, Yes Bank said that a number of investors had shown interest in buying Yes Bank equities worth $2 billion.

The bank had then claimed that it was in discussions with the family office of Erwin Singh Braich/SPGP Holdings and the investors had shown an interest in investing $1.2 billion through a binding offer.

Additionally, the bank had said it had received interest from the family office of Citax Holdings Ltd and Citax Investment Group for an investment of $500 million.

On Friday, Yes Bank said its board will not proceed with the offer made by Erwin Singh Braich/SPGP Holdings. However, the bank is favourably considering the offer by Citax and the final decision regarding the allotment will be taken in the next board meeting.

Yet another agenda of the board meeting was the resignation of the bank’s audit committee chairman Uttam Prakash Agarwal, who stepped down as an independent director citing concerns regarding corporate governance and management practices.

Mint had first reported on 24 November on the questions raised against Agarwal’s appointment.

The Mint report had said that the Reserve Bank of India had asked Yes Bank to re-examine the “fit and proper” status of Agarwal after he was found to have failed to disclose details of criminal cases filed against him.