Yes Bank to allot shares worth Rs120 crore to Swiss Re

Mumbai: Yes Bank Ltd will seek shareholders' approval to allot shares worth Rs 120 crore to Zurich-based Swiss Reinsurance Company. Yes Bank said it would seek shareholders' approval to issue up to one crore-equity shares at a price of Rs120 per share to the Swiss firm at the forthcoming EGM on November 20, the bank said in a filing with the Bombay Stock Exchange (BSE). Yes Bank has recently raised Rs 180 crore ($40 million) as subordinated tier II debt through private placement of unsecured, redeemable non-convertible, subordinated bonds. The initiatives are a part of the bank's overall plan to raise up to $ 150 million by the end of March 2007.

The bank has received board approval to raise capital from perpetual debt instruments forming part of tier I capital up to Rs 85 crore and by way of hybrid instruments forming part of upper tier II capital up to Rs 280 crore. The bank had recently announced a private placement of 10 million equity shares with Swiss Re at a premium of Rs 110 per share. Yes Bank had posted a 50.8 per cent jump in net profit for the quarter ended September 30, at Rs 21.49 crore as against Rs 14.25 crore in the same quarter previous fiscal. Total income recorded a gain of 182.2 per cent at Rs 166 crore from Rs 58.82 crore in the same quarter last year. The bank's operating profit grew by 55.4 per cent to Rs 34.9 crore from Rs 22.48 crore in the same quarter a year ago. Total advances of the bank jumped by 177.1 per cent to Rs 3,730.5 crore from Rs 1,346.4 crore as of September 30, last year, while total deposits grew by 293.1 per cent to Rs 4,329.9 crore from Rs 1,101.4 crore as on September 30, 2005. The bank is also planning an expansion of branches in the country.

Yes Bank's capital adequacy ratio stood at 12 per cent for the period ended September 30. The shares of Yes Bank were trading at Rs 114.80, up 4.41 per cent on the BSE.