Yes Bank, one of the leading private sector banks, announced that the board of directors of the bank have approved the management proposal to seek final approval of Shareholders for increase in the limit for the FII / FPI of upto  maximum 74% of the paid up share capital of the bank from the existing limit of 49% of the paid up share capital, considering the following.

The Union Budget for 2015-2016 has announced that distinction between different types of foreign investments, especially between foreign portfolio investments and foreign direct investments to be done away with and replaced with composite cap. The amendments to applicable laws and the increased applicable cap for investment by FPIs/FIIs notification is still awaited.

Accordingly, the Board approved the above proposal to seek the enabling approval of the Shareholders, so as to enable the shareholders of the Bank to avail the substantial  foreign ownership benefits of the increased limit upto 74% foreign ownership as and when the relevant Regulation/notifications are prescribed by the authorities / government and subject thereto.

Yes Bank's board has also approved a capital raising plan of upto USD 1 billion by way of ADR ( American Depository Receipts) and/ or QIP ( Qualified Institutional Placement, or any other appropriate mode as deemed suitable. This is subject to shareholder approval.

In addition to the approval for raising capital, the board also approved sponsored Level I Depository Receipt (DR) issuance programme of upto 10 million DRs, with conversion of 2 equity shares to 1 DR, pursuant to the depository receipts scheme, 2014 for facilitating issue of depository receipts outside India against underlying existing equity shares through a Foreign Depository through sponsored/unsponsored route.

Shares of the bank gained Rs 51.75, or 6.5%, to trade at Rs 847.50. The total volume of shares traded was 901,570 at the BSE (2.34 p.m., Thursday).