FIPB defers Kotak bank proposal for raising FII limit
An inter-ministerial panel on Monday deferred <g data-gr-id="19">decision</g> for the second time on Kotak Mahindra Bank’s proposal for raising <g data-gr-id="20">foreign</g> investment limit in the bank to 55 <g data-gr-id="17">per cent</g>. The Foreign Investment Promotion Board (FIPB) had taken up the application in its meeting, but the decision was deferred in want of comments from the Department of Financial Services (DFS), sources said.
The Finance Ministry sources further said the DFS is likely to submit its comments by the end of this month. Earlier, the board had deferred <g data-gr-id="16">decision</g> on the proposal in its 217th meeting held on April 30. Kotak is seeking FIPB approval to raise the aggregate foreign investment limit to 55 per cent.
The Reserve Bank has barred overseas investments in <g data-gr-id="14">private</g> sector lender after foreign shareholding in it hit the permissible threshold following <g data-gr-id="15">merger</g> of ING Vysya Bank with Kotak Bank.
Investments from FIIs, FPIs and foreign banks had reached 48.55 per cent in the merged entity. FIPB is a single window clearance system for proposals on FDI.