Private equity investors Carlyle and Advent International have secured conditional approval from the Reserve Bank of India (RBI) to invest $1.1bn (INR89bn) in Yes Bank.

In a stock exchange announcement, Yes Bank said: “We hereby inform you that vide separate letters dated 30 November 2022, the Reserve Bank of India has issued a conditional approval to each Investor with respect to the proposed acquisition by each of them of up to 9.99% of paid-up share capital of the bank through subscription to equity shares and share warrants of the bank and the investors are evaluating the conditions.

“The investors and the bank will engage with the RBI to seek an early resolution of the conditions to procure the final approval on this matter.”

The planned investment is being made by Verventa Holdings, a subsidiary of funds managed by Advent, and CA Basque Investments, which is a division of the firm doing business as Carlyle Group internationally.

In July this year, the Indian private sector bank announced plans to raise capital by selling up to 10% stake to each investor.

Specifically, approximately $640m will be raised via equity shares and $475m through equity share warrants, the bank had said earlier.

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Yes Bank plans to use the proceeds to strengthen its equity capital base and support its medium and long-term growth plans.

The deal has already secured approval from the Competition Commission of India (CCI).