Government today permitted Axis Bank to raise foreign shareholding to 74 per cent, entailing investment of around Rs 13,000 crore.
Cabinet Committee on Economic Affairs (CCEA) headed by Prime Minister Narendra Modi cleared the proposal of Axis Bank for increasing foreign shareholding limit from existing 62 per cent to 74 per cent.
The proposal would lead to foreign investment of about Rs 12,973 crore.
At present, private banks have a total foreign limit of 74 per cent, of which FII limit is 49 per cent.
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.
One of the leading private lenders, Axis Bank started operations in 1994 and is promoted by financial institutions such as UTI, LIC, GIC and its subsidiaries.