Sunday, 24 August 2014

HDFC Bank to increase foreign investment limit up to 74 percent

HDFC Bank, the second-largest private sector bank in India, is reportedly planning to increase its foreign investment limit up to 74 percent. The bank has already sent a fresh petition to government on raising its foreign investment limit. The bank in its petition has also clarified that HDFC’s stake in the bank is not foreign. However, the Department of Economic Affairs and Department of Industrial Policy & Promotion view HDFC’s 22.56 percent stake in HDFC Bank as foreign investment.
Late last year, the Bank had approached the Foreign Investment Promotion Board (FIPB) for increasing the foreign holding in the bank to 67.55 per cent from 49 per cent. If the proposal of the bank to raise foreign investment to 67.55 per cent is accepted, it would exceed the cap of 74 per cent, after taking into account parent HDFC's stake.
HDFC Bank is one of India’s premier banks providing a wide range of financial products and services to its 28.9 million customers. As of June 30, 2014, the bank had a distribution network with 3,488 branches and 11,426 ATMs in 2,231 cities/towns.

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