CCEA may consider YES Bank's proposal to raise Rs 2,650 cr

The government is likely to consider tomorrow private sector lender YES Bank's proposal to raise capital of Rs 2,650 crore through qualified institutional placement (QIP) from overseas.

The bank's proposal to hike foreign equity participation up to 60% through QIP of its equity shares to eligible non-residents or issues of global depository receipts to eligible non-resident investors would be considered by Cabinet Committee on Economic Affairs (CCEA), sources said.

In April, Foreign Investment Promotion Board (FIPB) referred to the proposal of Yes Bank to CCEA.

FDI proposals of up to Rs 1,200 crore are cleared by FIPB, while investments over Rs 1,200 crore are considered by CCEA.

The bank has got 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% jump in net profit at Rs 362.15 crore for the fourth quarter ended March 31, 2013.

The bank had a net profit of Rs 271.8 crore in the same quarter in the previous fiscal.

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 previous fiscal.