Yes Bank charts growth roadmap after raising $1 bn from two PE investors

Yes Bank charts growth roadmap after raising $1 bn from two PE investors

Two years after India’s central bank had to step in to take control of Yes Bank to calm panicked depositors and stem systemic risk, the lender is looking to expand its loan portfolio and acquire smaller rivals to revive its business, its chief executive said.

The mid-sized lender’s expansion plan comes after it raised $1.1 billion last week by selling up to a 10% stake to Carlyle Group and Advent International.

The fundraising marked a rare vote of confidence in Yes Bank, which had to be taken over by the Reserve Bank of India in March 2020 after months of deteriorating financial conditions and allegations of mismanagement.

The bank also managed to raise capital for the first time since July 2020, at a time when the outlook for the banking sector in many overseas markets has worsened due to slowing economic growth, which is expected to negatively impact asset quality and credit demand.

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