Moreover, such a move might actually be a win-win situation for both Kotak and Yes Bank, industry observers said. However, the proposal was shot down by the Uday Kotak-led bank, which called it as industry’s opinion and distanced itself from the narrative. Last week, Yes Bank said that it is willing to “favourably consider the offer of $500 million of Citax Holdings and Citax Investment Group and the final decision regarding allotment will follow in the next board meeting.” Yes Bank had earlier indicated that it intends to raise up to $1.2 billion by December and, in the process, give the investors a seat on the company’s board.

The bank has also postponed the decision to approve or decline the binding offer of $1.2 billion—60 per cent of the total capital the bank aims to raise—submitted by mysterious investor Erwin Singh Braich. At present, Yes Bank has received multiple non-binding but strong bids from marquee domestic and global institutional investors and family offices.