Shares of troubled Yes Bank surged over 10% today even though benchmark indices were in the red. Investors of the bank seem to have taken comfort from the commentary by its newly appointed chief Prashant Kumar.
In an interview with CNBC-TV18, Kumar said the bank needs ₹4,000 crore as survival capital. The bank’s common equity Tier-1 (CET-1) capital breached the regulatory minimum and dropped to 6.3% in March.
Kumar said the aim is to raise ₹8,800 crore to bring the CET-1 to 10%. Inadequate capital was the crux of Yes Bank’s fall, whose troubles began due to aggressive lending by the bank under its erstwhile promoter Rana Kapoor.