Federal Bank receives FIPB nod to raise foreign shareholding limit

Federal Bank receives FIPB nod to raise foreign shareholding
Private -sector lender, Federal Bank has received Foreign Investment Promotion Board's approval to raise the foreign shareholding limit in the bank to 74 per cent, said the media report.

The bank approached for FIPB nod on the back of Reserve Bank of India's prohibition to foreign institutional investors, non-resident Indians and persons of Indian origin from purchasing shares in Federal Bank as its foreign holding had crossed 49 per cent.

As on September 2013, holding of FIIs in the bank was 44.11 per cent, of DII (domestic institutional investors) 20.60 per cent and of others 35.29 per cent, added the media report.

Moreover, the bank also requires clearance of the Cabinet Committee of Economic Affairs (CCEA), since the proposal involves foreign investments of about Rs 1,400 crore, a Finance Ministry official said after Federal Bank's application was approved in the meeting of FIPB.

Dion Global Solutions Ltd.

Read more about: federal bank, rbi, fii, fipb, ccea, dii
Story first published: Friday, October 25, 2013, 9:12 [IST]
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