The Government is likely to consider tomorrow YES Bank’s proposal to raise Rs 2,650-crore capital through qualified institutional placement (QIP) issue.
The bank’s proposal to hike the foreign equity participation up to 60 per cent through QIP of equity shares to eligible non-residents or issue of global depository receipts to eligible non-resident investors would be considered by the Cabinet Committee on Economic Affairs (CCEA), sources said.
In April, the Foreign Investment Promotion Board (FIPB) had referred YES Bank’s proposal to CCEA.
Foreign Direct Investment proposals of up to Rs 1,200 crore are cleared by the Foreign Investment Promotion Board, while investments over Rs 1,200 crore are considered by CCEA.
The bank has got its board approval to raise up to $500 million. The bank may take GDR or QIP route to raise this money.
YES Bank posted 33.2 per cent jump in net profit at Rs 362.15 crore for the fourth quarter ended March 31, 2013, against Rs 271.8 crore in the same quarter previous fiscal.
Its total income rose to Rs 2,667.03 crore from Rs 2,051.4 crore.