Yes Bank on Thursday received approval from its Board of Directors and shareholders to raise Rs 2,500 crore worth funds through non-convertible debt securities. 

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In a regulatory filing, the bank said that it will raise funds in one or more tranches on private placement basis from time to time. 

"Pursuant to Regulation 50(2) of Sebi Regulations, 2015, we wish to inform you that pursuant to approvals, the bank proposes to raise funds by issuing Senior Unsecured Listed Rated Redeemable Long Term Bonds in the form debentures amounting to Rs 1000 crore, with a Green Shoe Option for an additional amount of upto Rs 1500 crore on private placement basis."

Post the announcement, the shares of the bank dropped by 2%. At 1430 hours the shares of the bank were trading at Rs 1244 per piece, down 1.93%, or Rs 24.50 on BSE.