“The bank has received strong interest from multiple foreign as well as domestic private equity and strategic investors for this capital raise and remains firmly on course to raising growth capital subject to the necessary approvals," it said in a regulatory filing on Wednesday.
The bank added that it has applied to the Reserve Bank of India (RBI) requesting approval for increase in the bank's authorised share capital.
Subsequent to the past two session’s fall, the share price of YES Bank
has tanked 80 per cent thus far in the financial year 2019-20, as compared to nil gains in the S&P BSE Sensex's value.
On August 28, Moody’s Investors Service downgraded YES Bank’s long-term foreign currency issuer rating, citing lower-than- expected capital raise.
"The downgrade of YES Bank's ratings takes into account the lower-than-expected amount of capital raised by the bank recently; and the risk that the substantial decline in the bank's share price will challenge its ability to raise sufficient capital to maintain the rating at its previous level," the global rating agency said in a report.
Furthermore, Moody's expects the bulk of YES Bank's operating profits will get consumed by loan loss provisions over the next 12-18 months, thereby failing to support internal capital generation.