Yes Bank gains after RBI approves hike in investment limit by foreign investors

Yes Bank rose 0.71% to Rs 950.35 at 12:55 IST on BSE after the Reserve Bank of India gave its approval for the increase in investment limit by foreign Investors in the bank to 60% from earlier 49%.

The Reserve Bank of India (RBI) made the notification on Friday, 29 April 2016,

Meanwhile, the S&P BSE Sensex was down 135.05 points or 0.52% at 25,474.61.

On BSE, so far 2.18 lakh shares were traded in the counter as against average daily volume of 4.07 lakh shares in the past one quarter. The stock hit a high of Rs 958 so far during the day, which is a record high for the counter. The stock hit a low of Rs 944 so far during the day. The stock had hit a 52-week low of Rs 590 on 24 August 2015. The stock had outperformed the market over the past one month till 29 April 2016, gaining 11.46% compared with Sensex's 2.84% gains. The scrip had also outperformed the market in past one quarter, rising 26.34% as against Sensex's 2.96% gains.

The large-cap private sector bank has equity capital of Rs 420.75 crore. Face value per share is Rs 10.

The Reserve Bank of India (RBI) notified on Friday, 29 April 2016, that foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) can now invest up to 60% of the paid-up capital of the bank from existing 49% under the Portfolio Investment Scheme (PIS). The RBI notified that the total foreign investment from all sources i.e. Global Depository Receipts (GDR)/American Depository Receipts (ADR)/Foreign Direct Investment (FDI)/Foreign Institutional Investors (FII)/ Registered Foreign Portfolios Investors (RFPIs)/Non-Resident Indians (NRI)/Persons of Indian Origin (PIO) in the company shall not exceed 60%. The central bank stated that Yes Bank has passed resolutions at its Board of Directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs. The purchases could be made through primary market and stock exchanges.

Yes Bank's net profit rose 27.4% to Rs 702.11 crore on 17.7% rise in total income to Rs 4331.11 crore in Q4 March 2016 over Q4 March 2015.

Yes Bank is a private sector bank with a pan India presence.

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