Shares of YES Bank declined in Thursday's session after rating agency ICRA downgraded YES Bank’s long-term ratings on various bonds, while retaining a negative outlook, post market hours on Wednesday. “The rating downgrade factors in the increase in stress, as reflected by the increase in BB and below rated exposures despite slippages from these exposures, as well as the lack of resolutions,” Icra said in a release.
The lender’s gross non-performing advances (GNPAs) and BB and below rated exposures increased to Rs 41,558 crore as on June 30 from Rs 30,772 crore as on March 31. In another development, ET reported that global funds are lined up for the bank's $400 million QIP.
WestBridge Capital Partners, Farallon Capital and GIC, Singapore’s sovereign wealth fund, are likely to be among the top investors in the upcoming share sale by the cash-starved lender, the report said. The private lender is looking to raise $350-400 million through a qualified institutional placement (QIP), which is expected to open within the next two weeks. The scrip was trading at Rs 88.50 apiece, down 0.73 per cent. The bank is looking to shore up its capital base due to a spike in bad loans.