Yes bank is India’s fifth largest private bank. After financial troubles and an increased number of bad loans the bank plans a capital increase. In total, Yes Bank intends to raise $2BN fresh capital. Thereof, new shares in the amount of $1.2BN will be bought by a firm affiliated with Erwin Singh Braich’s single family office.
Financial troubles at Yes Bank making a capital increase necessary
The Mumbai-based Yes bank was founded in 2004 by Rana Kapoor, Today, the bank is India’s fifth largest bank with more than 630 branches in 375 cities. For two years, Yes Bank’s stock is steadily falling. The crisis started as the Indian regulators forced the bank to disclose that it had $630M bad loans than reported. Founder and former CEO Rana Kapoor was then replaced by Ex-Deutsche Bank India CEO Ravneet Gill – who is now fighting the crises. Through the intended $2BN capital raise, the bank wants to ease the financial situation of the bank.
Numerous single family offices investing in capital raise
Various investors pledged money to the capital raise: $1.2BN by the Erwin Singh Braich single family office, $500M by Citax Holding, $120M from a US fund, $50M from GMR Group, $50M from Discovery Capital, $30M from Ward Ferry and $25M from the Aditya Birla Famly Office. The main investor, Erwin Singh Braich is a Canadian billionaire. He will invest through an affiliated Singapore-based firm, SPGP Holdings. It is relatively little known about Braich, besides the fact that he is the son of Herman Singh Braich, an Indian who emigrated to Canada many years ago and that he runs an industrial conglomerate.
Economic Times (1), 3.12.2019
Economic Times (2), 3.12.2019
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