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YES Bank, on Monday, said it has received the go-ahead from the Reserve Bank of India to raise capital, even as its share price touched a 10-year low amid concerns over its exposure to a large housing finance company.

“The bank is pleased to inform you that it has received acknowledgement from the Reserve Bank of India to go ahead with the proposed increase in its authorised share capital,” it said in a regulatory filing, adding that it will now seek necessary shareholders’ consent and proceed expeditiously with its plans to raise capital.

“Subsequent to receiving the go-ahead from the RBI on September 27, the bank is firmly on track to raise the required growth capital,” said Ravneet Gill, Managing Director and CEO, YES Bank.

The bank’s board had approved a proposal to raise growth capital last month by increasing the authorised share capital of the bank to ₹1,100 crore from the current ₹800 crore.

However, with its scrip tumbling by over 15 per cent on the BSE, the lender refuted speculation based on market rumours and reports. “We strongly refute them as being speculative, unsubstantiated, and irresponsible,” it said in a statement, adding that though this has impacted the share price adversely, the bank would like to state that its capital and liquidity position are comfortably above the regulatory threshold and that the asset quality is in line with the guidance provided after the first quarter results.

“The bank’s outstanding exposure to the housing finance/real estate conglomerate, which is in the news today, is totally secured, and over the last six months, there has been a reduction of approximately 30 per cent in this exposure. The account is standard and current,” it said.

YES Bank scrip fell 15.06 per cent and hit ₹41.45 apiece on the BSE. Indiabulls Housing Finance, which had proposed to merge with Lakshmi Vilas Bank, also plunged 34.39 per cent to close at ₹255.50 apiece on the BSE

Other bank stocks, including those of HDFC Bank, State Bank of India and Axis Bank, also fell on the BSE.

IndusInd Bank also clarified in a regulatory filing about its exposure to a “large housing finance company”. “We wish to clarify that, as of September 29closing, the bank’s gross exposure (aggregate of funded and non-funded) to the HFC, its subsidiaries, and associate finance companies stands at approximately 0.35 per cent of the loan book. The exposure is fully/strongly collateralised with no overdues. The group also maintains equal or higher amounts of unpledged fixed deposits with the bank,” it said.