Private sector lender YES Bank, the fifth largest private sector bank by assets, has launched a Qualified Institutional Placement (QIP) issue of up to $650 million, six months after a similar attempt to raise funds failed to take off.

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The base size of the sale of new shares is $650 million and the bank has an option to increase it to $750 million. The shares are being sold in a price range of Rs 1,455 to Rs 1,500, at a discount of 1.22% to 4.19% to the stock's Thursday closing price of Rs 1,518.60 on the National Stock Exchange (NSE).

Earlier on September 7, 2016, the bank had launched a $1 billion QIP, which it had to withdraw the very next day citing "extreme volatility during today's trading because of misinterpretation of new QIP guidelines".

The Securities and Exchange Board of India (Sebi) had conducted a probe into the failed QIP and called YES Bank's merchant bankers to find out what had gone wrong with it. After the meeting, its preliminary findings suggested that disclosure requirements had not been followed correctly in the issue. Sebi also found that the company had mis-represented facts and failed to make adequate disclosure before proceeding with the issue.

Bank of America Merrill Lynch, CLSA, IIFL, Motilal Oswal are managing the latest share sale.

YES Bank's profit for the December quarter rose 30.62% from a year ago due to higher net interest income and lower provisions. Gross non-performing assets (NPAs) rose 9.73% to Rs 1,005.85 crore during this period, higher than Rs 916.68 crore in the September quarter.

As a percentage of total loans, gross NPAs stood at 0.85% at the end of December compared to 0.83% in the previous quarter and 0.66% in the year-ago quarter. Advances rose 38.7% from a year ago to Rs 1.17 lakh crore, while deposits jumped 30.5% to Rs 1.32 lakh crore. Net profit for the quarter stood at Rs 882.63 crore compared to Rs 675.74 crore a year ago.