Axis Bank to be 'foreign-owned' after proposed hike to 62% in overseas investments: Report

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Axis Bank to be 'foreign-owned'
Axis Bank will become a "foreign- owned" lender, to be governed by FDI policy, following the go- ahead to its proposed increase in foreign investment holding to 62 per cent, entailing inflow of over Rs 6,200 crore, reported PTI.

The lender seeks to raise foreign investment holding from the existing 49 per cent to 62 per cent. Following the hike in stake by foreign investors the bank will become foreign-owned, whereby every future investment in seven subsidiaries will be governed by the FDI policy, said the media reports.

As per the FDI policy, downstream investment by an Indian company, "which is not owned and/or controlled by a resident entity/ies into another Indian company would be in accordance or compliance with the relevant sectoral conditions on entry route".

The bank's seven subsidiaries are Axis Capitals, Axis Finance Pvt Ltd, Axis Private Equity ltd, Axis Trustee Services Ltd, Axis Asset Management Company, Axis Mutual Fund Trustee Ltd and Axis UK Ltd.

The proposal to raise foreign investment limit by 13 per cent would attract inflows of Rs 6,265.76 crore (around USD 1 billion), media reports said.As of June this year, foreign institutional investment (FII) holding in the bank was 40.7 per cent, while global depository receipts (GDRs) total 8.08 per cent.

Dion Global Solutions Ltd.

Story first published: Monday, November 18, 2013, 9:14 [IST]
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