FII allowed to raise stake in Karur Vysya bank to 40%: Media Report

FII allowed to raise stake in Karur Vysya bank to 40%: Media Report
Foreign Institutional Investors (FIIs) have been allowed to raise their stake in private sector lender Karur Vysya Bank to up to 40 per cent, reported PTI.primary
"...the Karur Vysya Bank Ltd has passed a resolution at its Board of Directors' Meeting and a resolution agreeing for the purchase of its equity shares by FIIs up to 40 per cent of their paid-up capital through primary/secondary markets in India," Reserve Bank said in a release.

The approval to the Karur Vysya Bank for raising FII investment limit to 40 per cent is subject to the condition that aggregate foreign investment in the bank should also not exceed the composite sectoral cap of 49 per cent (49 per cent under automatic route and beyond 49 per cent to 74 per cent under government Route), RBI said.

Under the existing conditions, RBI should be informed about acquisition or transfer of shares of 5 per cent and more of a private sector bank by FIIs.

Dion Global Solutions Ltd.

Story first published: Friday, January 3, 2014, 9:12 [IST]
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