Mumbai, Nov 3 (SocialNews.XYZ) Emkay Global Financial Services has said in a recent report that Yes Bank's asset-quality woes may continue.
After Yes Bank reported a weak set of results last week, the report said that the company needed "regular capital dose to thrive".
Emkay said that Yes Bank's fresh NPAs "were sky-high at Rs 59 billion", adding that the bank's "current aggression in retail without proper risk management systems in place could be risky".
However, it also stated that "heavy capital injection, if any, may ease the current pressure on the capital front but unabated stress flow will keep the P/L bleeding and call for prolonged dilution risk for investors".
The report further said that the incoming capital "may help survive but the bank needed more to thrive".
Yes Bank had said in an exchange filing that the bank had received strong interest from multiple foreign as well as domestic private equity and strategic investors.
The lender said that it has now received a binding offer from a global investor for an investment of $1.2 billion in the bank through fresh issuance of equity shares, subject to regulatory approvals and conditions as well as the bank's board and shareholders' approvals.
Source: IANS
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