Yes Bank News - Yes Bank has successfully raised Rs 3,500 crore on Tuesday, 31st March 2020. The money was raised via certificates of deposit. This is the second time within three working days that two people with complete knowledge of the Yes Bank News informed.
Two of the major state-run banks have said to become subscribed to these money market instruments with about six-month maturity.
The lender is undergoing restructuring. It has most likely offered about 8.25 percent to the investors missing the benefits of a softer interest rate during the last few days amidst pushing cash in the system.
“The Public sector banks that are flush with liquidity are actually subscribing to the Certificates of Deposit of the Yes Bank.” as per Yes Bank News
Certificate of Deposit rates has dropped up to 275 basis points since last Friday. This took place after the announcement by the Reserve Bank of India of a liquidity injection of Rs 3.74 lakh crore into the whole system in a bi-monthly policy announcement.
Primary issuances are going up every day after the announcement of the RBI hence ending a dry spell.
The Yes Bank news is that they have raised Rs 3,700 crores collectively on Thursday and Friday via the certificate of deposits that had offered the same rate.
On 19th March 2020, Crisil had assigned an ‘A2' rating on Yes bank’s Rs 20,000 crore Certificate of Deposits program.
“The rating is underpinned by expectations of a continuation of the extraordinary systemic support from its major stakeholders, and also sizeable ownership of the State Bank of India,” as per the latest Yes Bank News.
Previously, the Reserve Bank of India had started a bailout plan for the Yes Bank, which had faced a loss in the funds during these weakening financials. Also, the RBI has given approval for a reconstruction scheme, based on which Yes Bank has received total equity of Rs 10,000 crore from the State Bank of India. SBI now holds a 48.2 percent stake in Yes Bank as well as other domestic financial institutions.
Yes Bank has plans to raise about Rs 5,000 crore in a share sale, even as it is slowing getting back to normal. Last Thursday, the bank even said that it will be raising the funds in one or more tranches. Although it didn’t say the dates by when they will be completing the sale of the shares.
PC: business today, Livemint
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