“Investments in the AT-1 bonds of Yes Bank were made in 2017, as part of its cash management of more than 20,000 crore rupees and when the bank was worth more than 10 billion dollars”, a declared the file to the stock exchanges.
The mortgage lender also clarified that the company or its promoter did not have a current Yes Bank term loan.
“Sameer Gehlaut, promoter of Indiabulls Housing Finance or one of its companies or one of the companies members of his family, does not have any loan in progress near Yes Bank”, indicates the file.
The Reserve Bank of India has developed a restructuring plan to give new life to Yes Bank which would involve a minimum equity investment of Rs 2,450 crores by the State Bank of India, but which would keep these separate entities leaving the possibility to the ‘State-run lender to exit investment when it becomes profitable. The plan also involves removing around Rs 8,700 crore invested by bondholders in AT1 instruments.
The first fallout was the announcement by the private lender IndusInd Bank to postpone a meeting of the board of directors to discuss raising capital through AT1 bonds. The bank blamed “current market conditions” for the postponement and said it was sufficiently capitalized.
“Given current market conditions and given that the bank is currently sufficiently capitalized, it has been decided not to consider raising Basel 3-compliant capital instruments for the time being,” the bank said in a brief. exchange.
A meeting of the board of directors of IndusInd Bank was scheduled for March 9 to approve the fundraising by issuing AT1 or Tier 2 bonds.