Yes Bank gains 7.5% on reports of fresh investors

Mumbai, Feb 5 (SocialNews.XYZ) Struggling private lender Yes Bank on Wednesday advanced 7.5 per cent on the BSE over reports that Cantor Fitzgerald LP, IDFC Securities Ltd and Ambit Pvt. will aid the bank to raise as much as $2 billion.

The cash-starved bank has seen several failed attempts to raise funds and has now reportedly turned to Anshu Jain, president of Cantor Fitzgerald. Jain was the former co-CEO of Deutsche Bank until 2015 and Ravneet Gill headed the German bank's Indian operations before he joined Yes Bank last year as CEO.

"If a private sector solution is unsuccessful, and a regulatory-led resolution is implemented, Moody's expects that the Indian authorities will strive to maintain systemic stability and avoid losses to depositors and senior creditors," Moody's rating agency said.

Earlier this month, Yes Bank rejected Erwin Singh Braich's $1.2 billion investment offer and said it will raise Rs 10,000 crore by issuing securities. The bank also said it will take up Citax Holdings, and Citax Investment Group's investment offers in the next board meeting.

Uncertainty on the banks future have also found roots owing to the corporate governance issues. Recently, Independent Director and Audit Committee Chairman Uttam Prakash Agarwal resigned, alleging that CEO and MD Gill was misleading the bank's board and shareholders.

Besides, its financials have also come under heavy scrutiny. Rating agency ICRA noted that Yes Bank's solvency profile remains weak with net NPA/CET of 36 per cent as on September 30, 2019. A number of rating firms have red flagged the bank's exposure to stressed projects.

Owing to uncertain news flow Yes Bank, once traders favorite, has proved to be one of the biggest wealth destroyers. Its stock price on Thursday closed at Rs 37.60 a share from a high of Rs 285.90 on April 4, 2019.

Source: IANS