BANK NEWS
FPO will meet growth requirement for two years says Yes Bank
New Delhi: On Monday Yes Bank said funds raised from its follow-on public offer (FPO) will help to meet its growth requirement for the next two years. Speaking at the press conference held to announce the FPO, Prashant Kumar, managing director and chief executive officer (MD&CEO), said part of the Rs15,000 crore to be raised through the FPO will be used as buffer provisioning. He assured that the provisioning against the impact of covid-19 will not be more than 100 basis points from the current capital raised.
Kumar said the bank is looking at a loan book mix of 60% retail and small and medium enterprises (SMEs) and 40% corporate. The lender is aiming at a return on assets of 1% over the next 1-3 years and 1.5% over 3-5 years.
Kumar also said that the bank was looking at hiving off its bad loans into a separate subsidiary.
“We are exploring the option of hiving off the bank’s bad assets into a separate organization, which will be professionally run, where there will be investors. This is subject to regulatory approvals," he said. MINT
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