Yes Bank’s capital increase strengthen’s its buffer: Moody’s

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Chennai, April 3 (IANS) Global credit rating agency Moody’s Investors Service on Monday said Yes Bank raising around Rs 49 billion last week strengthens its capitalisation and loss absorbing buffer as well as supports credit growth.

“The capital increase is credit positive because it strengthens the bank’s capitalisation and loss-absorbing buffers and supports the bank’s credit growth,” Moody’s said.

“Using Yes Bank’s capital position as of December 2016, we estimate that the capital raise will increase the bank’s common equity Tier 1 (CET1) ratio by about three percentage points to 12.9 per cent,” Moody’s said.

Last Wednesday, Yes Bank Limited announced that it had raised approximately Rs 49 billion ($750 million) in new capital via a secondary offering, Moody’s said.

–IANS

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