Bandhan has sought a nod to offer 5% stake each to IFC and Singapore’s GIC in its bank
The Foreign Investment Promotion Board (FIPB) will vet 47 foreign investment proposals on Monday, including one from Bandhan Financial Services, which has received the Reserve Bank of India’s approval to set up a bank.
Bandhan has sought the FIPB’s nod to offer 5% stake each to International Finance Corporation (the World Bank Group’s private investment arm) and the Singapore government’s sovereign wealth fund, GIC, in its banking venture, according to reports.
As both the entities also have stakes in Bandhan Financial Services, the holding company of the bank, their effective stake in Bandhan Bank would be higher. Bandhan Bank is slated to commence operations from August 23. Subject to approvals, foreign investment up to 74% is allowed in Indian banking firms.
The FIPB, an inter-ministerial body, is a single-window clearance mechanism for foreign investment proposals worth up to Rs 3,000 crore.
On Monday, the FIPB would also consider the foreign investment proposal of Catholic Syrian Bank. The bank has received the Securities and Exchange Board of India’s (Sebi) approval on June 30 to raise up to R400 crore through an initial public offer.
Among others, 15 investment proposals are related to pharma sector. They involve companies such as Glaxo SmithKline Pharmaceuticals, Novartis Healthcare, Mylan Laboratories and Natco Pharma.