Private equity firms buy stake in India’s Yes Bank as part of $1.1bn capital raise
India’s Yes Bank has raised $1.1 billion in capital from private equity investors Carlyle Group and Advent International, with both companies announcing they have agreed to acquire up to a 10% stake in the firm.
Prashant Kumar, MD and CEO of Yes Bank, says the partnership with the companies will “play a crucial role in the next growth phase of the bank”.
Founded in 2004 and headquartered in Mumbai, Yes Bank is the sixth largest private sector bank in India.
It offers products and services to corporates, small and medium-sized enterprises (SMEs) and retail customers and operates approximately 1,140 branches in more than 700 cities and towns across India.
It also provides investment banking, merchant banking and brokerage services through Yes Securities.
Advent says that once approved, the deal will be “one of the largest private equity investments in the Indian banking sector”.
Carlyle adds the new cash will boost the bank’s capital adequacy and says it aims to support Yes Bank “in its growth ambitions in retail and transaction banking and digital payments”.
Both firms will have one nominee on the bank’s board of directors following the transaction, which is subject to customary regulatory approvals as well as shareholder approval.