Yes Bank gains after RBI withdraws restriction on foreign buying

Yes Bank rose 3.46% to Rs 699.65 at 10:25 IST on BSE after the central bank allowed the purchases of the bank's shares by the foreigners after foreign holding fell below the caution limit.

The Reserve Bank of India (RBI) made the notification on Thursday, 20 November 2014.

Meanwhile, the S&P BSE Sensex was up 165.98 points or 0.59% at 28,233.54.

On BSE, so far 1.35 lakh shares were traded in the counter as against average daily volume of 2.64 lakh shares in the past one quarter.

The stock hit a high of Rs 701.15 and a low of Rs 688.30 so far during the day. The stock had hit a record high of Rs 712.70 on 13 November 2014. The stock had hit a 52-week low of Rs 292.10 on 4 February 2014.

The stock had outperformed the market over the past one month till 20 November 2014, rising 10.17% compared with the Sensex's 6.2% rise. The scrip had also outperformed the market in past one quarter, gaining 16.01% as against Sensex's 6.66% rise.

The large-cap private sector bank has an equity capital of Rs 417.08 crore. Face value per share is Rs 10.

The Reserve Bank of India (RBI) notified that aggregate share holdings in Yes Bank by Foreign Institutional Investors (FII)/Registered Foreign Portfolios Investors (RFPI)/Non-Resident Indians (NRI)/Persons of Indian Origin (PIO) and through American Depository Receipts (ADR)/Global Depository Receipts (GDR)/Foreign Direct Investment (FDI) have gone below the prescribed threshold caution limit stipulated under the extant FDI policy. Hence the restrictions placed on the purchase of shares of the above bank are withdrawn with immediate effect. Equity shares of Yes Bank can now be purchased through primary market and stock exchanges, RBI said in a statement.

FII investment of upto 49% of its paid up capital is allowed in Yes Bank. The bank has raised the ceiling from 10% upto 24% in respect of NRIs investments under PIS (w.e.f. 29 November 2010). Once the aggregate net purchases of equity shares of the company by FIIs/NRIs/PIOs reach the cut-off point, which is 2% below the overall limit, the Reserve Bank cautions all designated bank branches so as not to purchase any more equity shares of the respective company on behalf of FIIs/NRIs/PIOs without prior approval of the Reserve Bank. If stake falls below the caution limit RBI withdraws the ban on purchases of shares by them.

Yes Bank's net profit rose 30% to Rs 482.54 crore on 13.3% rise in total income to Rs 3337.97 crore in Q2 September 2014 over Q2 September 2013.

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