YES surges 4% as RBI allows FIIs to buy equity

Shares of YES Bank rose about four per cent on Friday, adding Rs 1,167.16 crore to its market valuation, after the Reserve Bank said FIIs can buy equity shares in the private lender as shareholding by foreign investors has gone below the prescribed limit.

YES Bank's scrip rallied 4.01 per cent to settle at Rs 703.40 on the BSE. During the day, it gained 4.25 per cent to Rs 705. At the NSE, it jumped 3.78 per cent to end at Rs 701.

Following the rally in the stock, the company's market valuation rose by Rs 1,167.16 crore to Rs 29,305.16 crore.

The RBI has removed YES Bank from its caution list of monitoring foreign investment following the dip in shareholding by foreign investors below the prescribed limit. "Equity shares of YES Bank can now be purchased through primary market and stock exchanges," it had said.

According to data available on the BSE, FIIs held 46.30 per cent in YES Bank as of quarter ended September 2014.a