The Cabinet Committee on Economic Affairs (CCEA) has approved the proposal of Yes Bank to increase foreign equity through the qualified institutional placement (QIP) route envisaging an inflow of about Rs.2,650 crore in foreign exchange.

Briefing journalists here on the decisions taken on Thursday by the CCEA at its meeting chaired by Prime Minister Manmohan Singh, Finance Minister P. Chidambaram said approval to the private sector lender’s proposal on the recommendation of the Foreign Investment Promotion Board (FIPB) would result in foreign investment amounting to about Rs.2,650 crore being received in the country.

Although Yes Bank’s proposal was cleared by the FIPB in April, a nod from the CCEA was necessary as the quantum of foreign investment involved was more than the board’s approval limit of Rs.1,200 crore.

As per the CCEA approval, Yes Bank proposes to increase foreign equity participation up to 60 per cent through a QIP of its equity shares to eligible non-residents and/or issue of GDRs (global depository receipts) to eligible non-resident investors.

3 whole-time directors

Mumbai Correspondent writes:

Meanwhile, the bank promoted its three top executives as whole-time directors of the bank to further build and strengthen the institutional and professional character of the private sector lender.

It promoted Rajat Monga, Senior Group President, as Executive Director and CFO; Sanjay Palve, Senior Group President, as Executive Director (Wholesale Banking); and Pralay Mondal, Senior Group President, as Executive Director (Branch and Retail Banking).

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