HDFC Bank gets nod to raise Rs 24K cr

Tribune News Service

New Delhi, June 13

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% of the enhanced paid-up equity share capital of the bank, Finance Minister Piyush Goyal said after the meeting of Cabinet Committee on Economic Affairs (CCEA) chaired by Prime Minister Narendra Modi.

Currently, the foreign holding in the bank is to the tune of 72.62%.

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% of the enhanced paid-up equity share capital of the bank. It will be subject to Foreign Direct Investment Policy conditionalities and other sectoral regulations and guidelines, the statement said.