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.
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