The Cabinet Committee on Economic Affairs (CCEA) has given its nod for YES Bank to bring in foreign investment of up to Rs 2,650 crore into the private sector lender.
Foreign holding in the equity capital of the bank can go up to 60 per cent, CCEA said, while approving the proposal.
The bank’s shareholders had on June 8 given their nod for it to raise up to $500 million capital from foreign investors through global depository receipts or qualified institutional placement of equity shares. This shareholders’ approval is valid for one year.
With the CCEA nod, all regulatory approvals for the capital raising is in place, Jaideep Iyer, Group President, Financial Management, YES Bank told Business Line.
The actual mode of capital raising is yet to be finalised by the bank’s board, Iyer said, adding that it could even be a mix of foreign as well as domestic issues.
“The timing for the capital raising is not yet decided. It could happen in the next 6-9 months. We are well stocked on capital. We are having good internal accruals and are not burning any capital,” Iyer said.
He said the bank does not see raising $500 million as a challenge and was confident of raising it.