HDFC Bank to raise Rs 24,000 cr via FDI

The Hitavada - - HOME & ABROAD -

THE Govern­ment on Wed­nes­day approved the pro­posal of HDFC Bank to raise ad­di­tional cap­i­tal Rs 24,000 crore by sell­ing eq­uity to for­eign in­vestors to fund its busi­ness growth.

This in­cludes pre­mium, over and above the pre­vi­ous approved limit of Rs 10,000 crore, that the com­pos­ite for­eign share­hold­ing in the bank should not ex­ceed 74 per cent of the en­hanced paid-up eq­uity share cap­i­tal of the bank, Fi­nance Min­is­ter Piyush Goyal said af­ter the Cab­i­net meet­ing chaired by Prime Min­is­ter Naren­dra Modi. With the rais­ing of this cap­i­tal, FDI in the bank will hit the reg­u­la­tory ceil­ing of 74 per cent, he said. Cur­rently, the FDI in the banks stands at 72.62 per cent.

As per the RBI guide­lines, for­eign hold­ing in public sec­tor banks in In­dia can­not go be­yond 74 per cent. The de­ci­sion would en­sure that the com­pos­ite for­eign share­hold­ing in the bank in­clu­sive of all types of for­eign in­vest­ments, both di­rect and in­di­rect, will not ex­ceed 74 per cent of the en­hanced paid-up eq­uity share cap­i­tal of the bank," the min­is­ter said.

(PTI)

De­fence Min­is­ter Nir­mala Sithara­man be­ing called on by Viet­namese Pres­i­dent Tran Dai Quang at the Pres­i­den­tial Palace, in Hanoi, on Wed­nes­day.

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