The decision was taken by the newly constituted board of Yes Bank which after slogging for several months to raise capital on 6 March got a lifeline in the form of equity capital infusion worth Rs10,000 crore from State Bank of India and seven private lenders.

On 10 January, the bank’s previous board and shareholders had approved a capital raising plan of Rs10,000 crore through equity issuance.

On 5 March the Reserve Bank of India had imposed a moratorium on the lender and subsequently the ministry of finance approved a reconstruction plan under which SBI got a 48.2% stake in Yes Bank. The government had then said that the bank’s board would be reconstructed following the capital infusion.

The bank resumed normal operations on March 18.

Following a long board meeting on Thursday which ended late evening, the bank said its board has approved a plan revising the bank’s capital raising limit to Rs15,000 crore from Rs10,000 crore earlier.

The bank said in an exchange filing that the amount of Rs15,000 crore could be raised in one or more tranches.

The bank’s stock closed down 10.27% at Rs26.65 apiece on BSE. At the current market price, a Rs15,000 crore capital raising may translate into an equity dilution of close to 40%.

It may be noted that on 6 March, the market value of Yes Bank Ltd had fallen to as low as Rs1,441 crore in intraday trading.

However, after the reconstruction plan was implemented and the capital infusion was completed, within a week, the bank’s value became Rs12,550 crore.

Since then the value of Yes Bank has rallied dramatically. This is primarily because of a scarcity of shares after a regulatory diktat that 75% of equity held by existing shareholders will be locked-in.

On Thursday, the bank also approved the structure of a new board.

Yes Bank will now have Sunil Mehta as its non-executive chairman; Prashant Kumar as managing director and CEO; Mahesh Krishnamurti as a non-executive director; Atul Bheda as a non-executive director; R Gandhi and Ananth Narayan Gopalakrishnan as additional directors appointed by Reserve Bank of India; Partha Pratim Sengupta and Swaminathan Janakiraman as directors nominated by SBI, said the bank in its filing.