Govt clears YES Bank's proposal to raise Rs 2,650 cr

The government has cleared the proposal of private sector lender YES Bank to raise Rs 2,650 crore through qualified institutional placement (QIP) from overseas.

The government has cleared the proposal of private sector lender YES Bank to raise Rs 2,650 crore through qualified institutional placement (QIP) from overseas.

The approval, given by the Cabinet Committee on Economic Affairs (CCEA), would result in foreign investment amounting to about Rs 2,650 crore being received in the country, finance minister P Chidambaram told reporters in New Delhi on Friday.

YES Bank proposes to increase the foreign equity participation upto 60% through a QIP of its equity shares to eligible non-resident investors.

Qualified institutional placement is a capital raising tool for listed Indian companies.

The proposal was cleared by the Foreign Investment Promotion Board (FIPB) in April, but since the investment was of more than Rs 1,200 crore, a CCEA nod was required which was given yesterday.

Earlier, the bank had got its board approval to raise up to $500 million.

YES Bank posted 33.2% jump in net profit at Rs 362.15 crore for the fourth quarter ended March 31, 2013.

Total income of the bank rose to Rs 2,667.03 crore in January-March quarter as compared to Rs 2,051.4 crore in the same period of previous fiscal.

Yes Bank's shares were trading at Rs 452.35 at BSE, up 1.9% from on Thursday's close.