RBI hikes foreign holding limit to 74% in Yes Bank

Reserve Bank today increased the foreign holding limit to 74 per cent of the paid-up capital in Yes Bank under the portfolio investment scheme.
Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 74 per cent from from the existing 60 per cent of the paid-up capital of Yes Bank under the Portfolio Investment Scheme (PIS), the Reserve Bank said in a release.
The RBI said the total foreign investment from all sources in the private sector Yes Bank shall not exceed 74 per cent.
"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 by FIIs/RFPIs," the RBI said.

Investors can make the purchases through primary market and stock exchanges, it added.
The Cabinet Committee on Economic Affairs had last month approved Yes Bank's proposal to increase foreign investment limit in the bank to 74 per cent, entailing FDI inflows of USD 1 billion (approximately Rs 6,885 crore).

It got the approval to raise the limit without any sub- limits for investment by way of issue of non-equity shares and/or other permissible instruments to eligible non-resident investors.
Following the approval, Yes Bank Managing Director Rana Kapoor earlier this month said there is headroom to raise capital but no immediate need as of now.

Yes Bank already has an enabling approval from its board of directors to raise an additional USD 1 billion of equity capital and it will be done in single tranche.
Stock of the bank closed 2.11 per cent higher at Rs 1,062.25 on the BSE.