New Delhi, Jun 28 (IANS): The government has approved private sector lender Yes Bank's proposal to increase foreign holdings in the company to 60 percent that is likely to result in overseas equity inflow of Rs.2,650 crore.

The Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Manmohan Singh approved the proposal at a meeting here Thursday.

The cabinet has given its approval based on the recommendations of the Foreign Investment Promotion Board (FIPB).

The FIPB had sent the proposal to the cabinet as the amount involved was more than Rs.1,200 crore, the limit beyond which the board cannot take final decision.

The bank will raise foreign money through a Qualified Institutional Placement (QIP) of its equity shares to eligible non-residents and/or issue of Global Depository Receipts (GDRs) to eligible non-resident investors.

“The approval would result in foreign investment amounting to Rs.2,650 crore approximately being received in the country,” according to a statement released here by finance ministry Friday.