Yes Bank to raise $400 mn

Expecting exponential growth in the next five years, private lender Yes Bank on Sunday said it will raise 400 million dollars (about Rs 2,000 crore) by means of equity through a follow-on public offer, and debt.

"From here we are looking for growth of up to 45 per cent on a year-to-year basis. We have been building the foundation of the bank for the last five years and now is the time to actualise high growth," Rana Kapoor, Managing Director and CEO of Yes Bank, said.

In the first tranche, the bank is likely to hit the bond market to raise 150 million dollars by the end of the current financial year or the early next fiscal, Kapoor said adding that the second capital raising event would be a follow-on public offer of up to 250 million dollar.

Asked about the total business by 2015, he said, "We are expecting our balance sheet of Rs 1,25,000 crore to Rs 1,50,000 crore of both advances and deposits."

The bank reported a net profit Rs 303.8 crore for 2008-09, a growth rate of nearly 52 per cent over the previous year. "The key differentiator for Yes Bank has been the unique knowledge-driven approach to offering industry-specific financial solutions that go beyond the traditional realm of banking," Kapoor said.

The focus of the bank will continue to be on the sunrise sectors like food and agri business, infrastructure, healthcare and life sciences, communications and technology, renewable energy and education, with agri bsiness leading the pack in the years to come.

Kapoor, however, clarified that both the capital raising events would be in th domestic markets as the GDRs and ADRs are no more attractive. On the follow-on public offer consisting about 250 million dollars (about Rs 1,200 crore), Kapoor said this will be the second capital raising event after raising debt but no time frame has been set as of now.

At present, the paid-up capital of the bank is Rs 297 crore and the networth is Rs 1,650 crore. Total capital funds of bank is Rs 3,060 crore as of March 2009.

"We will be growing at 30-35 per cent on conservative basis but on a good day growing 45-50 per cent is not impossible for bank like us," Kapoor said, adding, the bank would seize every opportunity to grow compared to many other banks, which right now because of 'legacy issues' are having controlled growth.

"In some of the banking system, they got the best of golden era of the economy. So in the process of that banks did take on some risk which I think will take best part of this year," he said.