NEW DELHI: India’s fifth largest private sector bank, “Yes Bank” is likely to raise USD 1 billion via foreign investors in the current financial year 2017 after getting the requisite permissions from the Government of India, last month. Also, Yes Bank became the first to get special permission from the Union Cabinet, over increasing foreign investment limit to 74 percent.
Yes Bank’s managing director Rana Kapoor said, “We had the approval from the Union Government. But, there is no urgency in getting the foreign investments as of now. As per the guidelines of the Union Cabinet, we have the privilege to bring in foreign investments during this current fiscal and we can raise the capital depending up on the market conditions at any time during this period”.
He added that the bank already has an enabling approval from its Board of Directors to raise an additional USD 1 billion of equity capital through FDI and that it will be done in single tranche.
Mr Rana Kapoor opined that the increased limits over foreign investments as a special privilege from the Government of India, will help them in global capital raising with enhanced flexibility. Mr Kapoor has been recently awarded by the London Business School for his contributions to entrepreneurship and innovation.
Cabinet Committee on Economic Affairs approved Yes Bank’s proposal last month to increase foreign investment limit in the bank to 74 per cent, entailing FDI inflows of USD 1 billion (Rs 6,885 crore), the Economic times reported.