Got allows Axis Bank to raise foreign stake to 74%
05 Jul 2016
The government has permitted state-funded private lender Axis Bank to raise foreign shareholding to 74 per cent, entailing sale of an additional 12 per cent equity involving investment of around Rs13, 000 cores.
The Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Narendra Modi today approved an increase in foreign investment in Axis Bank from the current approved level of 62 per cent to 74 per cent of the total paid-up share capital of the bank on a fully fungible basis.
At present, private banks have a total foreign limit of 74 per cent, of which FII limit is 49 per cent.
The foreign investment will be by way of foreign institutional investors (FIIs) / foreign portfolio investors (FPIs) / non-resident Indians (NRIs), foreign direct investment, including through ADRs / GDRs and indirect foreign investment.
Earlier this year, inter-ministerial panel FIPB headed by Economic Affairs Secretary Shaktikanta Das recommended the Axis Bank's proposal to the CCEA as the capital inflow was over Rs 5,000 crore.
The Foreign Investment Promotion Board (FIPB) can clear proposals worth up to Rs 5,000 crore.
The Foreign Investment Promotion Board (FIPB) can clear proposals worth up to Rs 5,000 crore.
With the approval, the country will receive foreign direct investment to the tune of Rs12,973.14 crore over the next three years.