Private equity firm Advent plans $1 billion investment in Indian bank Yes Bank

The logo of Yes Bank is pictured on the facade of its head office in Mumbai, India January 17, 2018. Picture taken January 17, 2018. REUTERS/Danish Siddiqui

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BENGALURU, Feb 4 (Reuters) – Private equity group Advent International is evaluating a 75 billion rupiah ($1.00 billion) investment in Indian bank Yes Bank (YESB.NS) to capitalize it further, reported Friday the Economic Times, sending shares of the private sector lender up 3%.

Advent conducts due diligence and may form a consortium, the report said, citing sources.

A 10% stake in the bank would be valued at 33.64 billion rupees, according to the report, adding that the proposed investment could be through a preferential allotment.

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Talks are ongoing and could fall apart if the stock price spikes or there is a regulatory hurdle, according to the report.

Advent and Yes Bank did not immediately respond to Reuters requests for comment.

The Reserve Bank of India in 2020 had taken control of Yes Bank, after the bad debt-laden lender failed to raise the capital needed to stay above imposed regulatory requirements.

Later, the State Bank of India (SBI.NS) and several private lenders stepped in to inject money into the lender and bail it out to address systemic risk issues.

($1 = 74.7200 Indian rupees)

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Reporting by Nallur Sethuraman in Bangalore; Editing by Subhranshu Sahu

Our standards: The Thomson Reuters Trust Principles.

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