FIPB to take up HDFC Bank plan to hike overseas stake

The Foreign Investment Promotion Board (FIPB) will consider a proposal by HDFC Bank to increase the overseas shareholding limit on February 3.

The bank, sources said, has sought permission "to maintain the permissible foreign holding in the bank up to 67.55 per cent of the total paid up capital, out of which the FII sub-limit would be 49 per cent and the balance 18.55 per cent would be FDI."

Last month, the FIPB deferred a decision on the proposal for want of more details.

The Reserve Bank of India (RBI) recently said foreign shareholding in HDFC Bank had crossed the overall limit of 49 per cent of its paid-up capital and that no further purchases of the bank's shares would be allowed through Indian stock exchanges on behalf of overseas investors, including NRIs, persons of Indian origin and holders of depository receipts.

Foreign shareholding in the bank as of December 13 was 52.18 per cent.

"Since the total foreign shareholding in the bank (FII and FDI) has crossed 49 per cent, the bank has filed an application with the FIPB seeking approval for increasing its foreign shareholding limit," HDFC Bank had said in a BSE filing.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • With RBI’s role diluted, we are moving closer towards a super regulator

    The government and the Reserve Bank of India (RBI) have signed a monetary policy framework agreement last month under which RBI will be committed to b

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Roopen Roy

The making of a digital Bharat

Exactly 20 years ago, Nicholas Negroponte of MIT Media Labs ...

Rajgopal Nidamboor

The eternal radiance of our being

We sense, we sight, we smell, we touch, we hear, ...

Shona Adhikari

Art world celebrates two ‘new’ Cezannes

The focus moves once more to post-impressionist Paul Cezanne, who ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture