Yes Bank has become the third Indian bank to have its shares to be listed on American stock exchanges. The only two other Indian banks to be listed in the US are ICICI Bank and HDFC Bank. The youngest Indian private bank has received a approval from its board to raise up to $1 billion by way of American Depository Receipts or through a Qualified Institutional Placement.
The shares of Yes Bank have raised by 7% to close at Rs 851 on Bombay Stock Exchange following the announcement. At the current market price, the market capitalization of the bank stands at Rs 35,566 crore. The permission follows a proposal to hike investment by foreign investors to 74% of the bank’s paid-up share capital from the existing limit of 49%.
Other than US Accounting norms, Yes Bank will also have to comply with the demanding Sarbanes Oxley (Sox) Act of 2002. In addition to changes in practices, Sox involves high legal costs for certifying compliance.
Tidbits
- Yes Bank, is India’s fifth largest private sector Bank, founded by Rana Kapoor in 2004.
- Yes bank is one of the fastest growing private bank in India.
- Yes Bank is the only Greenfield Bank licence awarded by the RBI in the last two decades.
- The Headquarters of Yes Bank is in Mumbai.
