Yes Bank preferential issue

Yes Bank Ltd on October 30, 2007, announced that its Capital Raising Committee of the Board of Directors approved the decision to issue 14.7 million equity shares, on a preferential basis, to Orient Global Tamarind Fund Pte Ltd (Orient Global Tamarind). Orient Global Tamarind is part of the Orient Global group, a Singapore - based private investment company founded by Mr. Richard Chandler.

This preferential issue of Tier I equity capital, constituting 4.99% of the expanded share capital of the Bank, is subject to necessary regulatory and the Bank's shareholder approvals. The shares have a lock-in period of one year from the date of issue.

The resulting investment of INR 3.31 billion (approximately USD 84 million) will enable the Bank to further accelerate its growth initiatives and build on the significant momentum it has generated across its various businesses since it commenced commercial operations in August 2004. In July 2005, the Bank successfully conduced an Initial Public Offering of INR 3.15 billion (approximately USD 70 million). Subsequently, in December 2006 the Bank raised a further INR 1.2 billion (approximately TJSI) 26.5 million) through a preferential placement of 10 million equity shares at INR 120 per share to Swiss Reinsurance Company, Zurich, Switzerland.

On the occasion of this announcement, the Managing Director & CEO of the Bank, Mr. Rana Kapoor, said: "This partnership with a highly principled and reputable investor like Orient Global, validates our business and financial model in the competitive banking sector and underlines the confidence of long-term value investors in YES BANK".

"This investment will further complement our expertise in providing knowledge based products and services to our customers in our ongoing quest to build one of the world's best quality bank in India", concluded Mr. Kapoor.