Daijiworld Media Network – Mumbai

Mumbai, Jun 4: Yes Bank is gearing up for a major capital boost as its board has approved plans to raise a total of Rs 16,000 crore, signalling a pivotal shift in the bank’s capital structure and governance setup. The decision was made during a board meeting held on June 3.

Of the total capital infusion, Rs 7,500 crore will be raised through equity issuance, while an additional Rs 8,500 crore will be mobilised via debt instruments. The move comes alongside the entry of Japan’s Sumitomo Mitsui Banking Corporation (SMBC) as a strategic investor, a development that is expected to significantly enhance the bank’s financial position and international partnerships.

The board also cleared key amendments to the bank’s Articles of Association, granting SMBC important rights. These include the right to maintain its stake in future share issuances and the authority to nominate two directors to Yes Bank’s board. In a balancing move, State Bank of India (SBI) — one of Yes Bank’s largest stakeholders — will continue to have the right to nominate one director.

These governance changes underscore SMBC’s growing influence in the bank’s strategic affairs and reflect Yes Bank’s efforts to strengthen its institutional backing and corporate structure. The fundraising proposals are, however, subject to necessary shareholder and regulatory approvals in the coming weeks.