CCEA approves Federal Bank's proposal to raise foreign shareholding to 74%: Media Report

CCEA approves Federal Bank's proposal to raise foreign shareholding to 74%
The Cabinet Committee on Economic Affairs has approved a proposal of Federal Bank for raising foreign shareholding limit in the bank to 74 per cent subject to the aggregate foreign institutional investors (FIIs) shareholding not exceeding 49 per cent of the paid up equity share capital of the bank, an official release said, as per the PTI report.

The approval would result in foreign investment of approximately Rs 1,400 crore in the country, it said.

Federal Bank had approached the Foreign Investment Promotion Board (FIPB), as Reserve Bank in August, 2013, prohibited 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. Subsequently, FIPB in October last year cleared the proposal to raise the foreign investment holding.

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.

Dion Global Solutions Ltd.

Read more about: federal bank, ccea, fii, share capital, fipb, rbi, nri, pio, dii
Story first published: Tuesday, January 21, 2014, 9:12 [IST]
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