GET Stock QuotesNews18 APP
News18 English
Powered by cricketnext logo
»
1-min read

Cabinet Clears HDFC Bank's Proposal to Raise Rs 24,000 Crore Via FDI

With the raising of this capital, FDI in the bank would hit the regulatory ceiling of 74 per cent, Finance Minister Piyush Goyal said after the Cabinet meeting chaired by Prime Minister Narendra Modi.

PTI

Updated:June 13, 2018, 9:15 PM IST
facebookTwittergoogleskypewhatsapp
Cabinet Clears HDFC Bank's Proposal to Raise Rs 24,000 Crore Via FDI
Representative Image. (Photo Credit: Getty Images)
Loading...
New Delhi: The government on Wednesday approved the proposal of HDFC Bank to raise additional capital Rs 24,000 crore by selling equity to foreign investors to fund its business growth.

This includes premium, over and above the previous approved limit of Rs 10,000 crore, that the composite foreign shareholding in the bank should not exceed 74 per cent of the enhanced paid-up equity share capital of the bank, Finance Minister Piyush Goyal said after the Cabinet meeting chaired by Prime Minister Narendra Modi.

With the raising of this capital, FDI in the bank will hit the regulatory ceiling of 74 percent, he said.

Currently, the FDI in the banks stands at 72.62 percent.

As per the RBI guidelines, foreign holding in public sector banks in India cannot go beyond 74 percent.

"The decision would ensure that the composite foreign shareholding in the bank inclusive of all types of foreign investments, both direct and indirect, will not exceed 74 percent of the enhanced paid-up equity share capital of the bank," the minister said.

“It will be subject to Foreign Direct Investment Policy conditionality and other sectorial regulations or guidelines.”

The proposed investment is expected to strengthen the capital adequacy ratio of the bank, he said.

Of the additional Rs 24,000 crore, Rs 8,500 crore is proposed to be allotted to HDFC Ltd, the promoter of the bank, on a preferential basis.

Remaining amount to be raised by issue of equity shares or convertible securities or depository receipts pursuant to a Qualified Institutions Placement, HDFC Bank had said.

It is to be noted that the Cabinet in 2015 cleared a proposal of HDFC Bank to raise Rs 10,000 crore from foreign investors.
| Edited by: Ahona Sengupta
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
Bajaj Finance 2,083.35 -1.51
Indiabulls Hsg 734.65 3.01
Reliance 1,054.70 -0.75
IndusInd Bank 1,473.15 1.64
Dewan Housing 192.90 2.39
Company Price Change %Gain
Indiabulls Hsg 735.05 2.88
Bajaj Finance 2,083.95 -1.63
Eicher Motors 22,287.50 -0.27
Dewan Housing 193.45 1.76
Asian Paints 1,138.80 -5.21
Top Gainers
Company Price Change %Gain
HPCL 217.90 3.47
Indiabulls Hsg 734.65 3.01
HDFC 1,686.75 1.72
IndusInd Bank 1,473.15 1.64
Bajaj Auto 2,586.50 1.16
Company Price Change %Gain
IndusInd Bank 1,473.40 2.16
HDFC 1,689.90 1.79
Yes Bank 213.65 1.26
Bajaj Auto 2,586.40 1.16
Adani Ports 318.25 1.13
Top Losers
Company Price Change %Gain
Asian Paints 1,138.45 -5.16
Sun Pharma 575.85 -5.12
Wipro 309.10 -4.07
Grasim 825.95 -3.66
UltraTechCement 3,343.65 -3.45
Company Price Change %Gain
Asian Paints 1,138.80 -5.21
Sun Pharma 576.30 -5.07
Wipro 309.30 -3.93
TCS 1,844.15 -3.05
Infosys 657.85 -3.01

Live TV

Loading...
Loading...