Yes Bank has raised Rs 3000cr through the issuance of bonds.
- Company has money in hand now for fund expansion
- The cost of funds is 9.5, which is not cheap.
-Demonetization has increased company’s CASA . I think this quarters could be one of the best for CASA growth, in line with the overall banking industry.
With half of the money they wanted to raise through QIP few months back, I think the bank would not be very keen on another QIP, which is the good the news as well as bad news.
The good news in a sense that equity won’t be diluted.
Bad news - Current Book value of the company is 385 and with $1 billion at 1300-1500 range would make the book value to approximately 500. So the current price of 1100-1200 does not look expensive.
Can someone shed light on business implication for Yes Bank raising 3000cr in the mid to long term?