Yes Bank gets government nod to increase FDI, hopes to raise $1 billion in FY17

Yes Bank, the fifth largest private sector bank of India, has recently got the nod from Indian government to increase its FDI to 74%, because of which it is likely to raise USD 1 billion from overseas investors in the ongoing fiscal.

"We have now headroom of about 32 per cent with the approval. There is no immediate need for raising capital but depending on market conditions, we can raise during the current fiscal," said Yes Bank Managing Director Rana Kapoor.

He added that the bank already has got permission from its board of directors to raise an additional USD 1 billion of equity capital, which will be done in single tranche, he added.

This increase in the FDI limit will be providing the bank with a vital flexibility in raising global capital, said Kapoor.

It was last month that the Cabinet Committee on Economic Affairs had approved Yes Bank's proposal of increasing the FDI limit. The bank claims to have become the first bank in India to have received such an approval for a fully fungible composite foreign investment limit of 74%.

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