Such concerns follow reports of lawsuits involving Erwin Singh Braich, a Canadian entrepreneur who alongside SPGP Holdings has committed $1.2 billion to the capital increase. A rejection by the RBI would add pressure on core equity capital at the country’s fourth-largest lender, which at 8.7 per cent is barely above the 8 per cent minimum regulatory norm.
rose 3.2 per cent at 11:39 a.m. in Mumbai, paring this week’s decline which earlier reached 17 per cent. The stock has tumbled about 66 per cent this year amid deepening concerns over the bank’s exposure to the troubled shadow-financing sector and other corporate borrowers.
“We expect the pressure on Yes Bank to continue as names of investors
are unfavorable and there is no precedent of the central bank allowing an individual investor to take a large stake in a bank,” said Ravikant Anand Bhat, a Mumbai-based analyst at Indianivesh Securities Ltd. “The stock is likely to decline further until the regulator gives its decision.”