Cabinet Okays Yes Bank Proposal To Raise Foreign Investment Limit

New Delhi: The Cabinet Committee on Economic Affairs on Wednesday approved Yes Bank’s proposal to increase foreign investment limit in the bank to 74 per cent, entailing FDI inflows of $1 billion (Rs 6,885 crore).

The CCEA granted ex-post facto approval to the proposal of Yes Bank for increase in the foreign investment limit to 74 per cent, from the existing foreign equity of 41.87 per cent, said Railway Minister Suresh Prabhu while briefing the media about Cabinet decisions.

The bank has got approval to raise the limit without any sub-limits for investment by way of issue of non-equity shares and/or other permissible instruments to eligible non-resident investors.

“The mode of instruments includes qualified institutions placement (QIP) of equity shares and/or issue of ADRs/GDRs and/or QFIs/FPIs under the Portfolio Investment Scheme (PIS) by acquisition of permissible securities on stock exchange (except NRIs),” said an official release.

This will result in a foreign direct investment of about Rs 6,885 crore in the country, it added.

The stock of Yes Bank closed at Rs 996.2 on BSE, up 1.98 per cent.