The government has approved HDFC Bank’s proposal to sell its shares to foreign investors and raise up to Rs 10,000 crore. The Cabinet Committee on Economic Affairs (CCEA) gave the final approval after the Foreign Investment Promotion Board (FIPB) had earlier cleared the proposal. A statement issued by CCEA said the approval was subject to aggregate foreign shareholding in the bank not exceeding 74% of the post-issue paid-up capital. HDFC Bank had approached FIPB to increase the foreign shareholding in the bank. Prevailing rules permit banks to have up to 49% of foreign investment without regulatory approval. The bank had obtained the shareholders’ approval to raise capital to the extent of Rs 10,000 crore.
