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FIPB lets HDFC Bank to up fgn holding to 74%

The FIPB on Friday cleared the long- pending proposal of HDFC Bank to hike foreign holding in the bank to 74 per cent.

‘FIPB considered and approved HDFC Bank's proposal to raise foreign investment ceiling to 74 per cent,’ officials said after the meeting of the Foreign Investment Promotion Board.

The FIPB is of the view that HDFC Bank' parent HDFC Ltd's 22 per cent holding in the bank is FDI and hence total foreign holding is 73.39 per cent, which includes FII, FDI, ADR and GDR.

‘So the bank has little headroom to raise funds from foreign investors,’ the official said. Late last year, HDFC Bank had approached the FIPB for increasing the foreign holding in the bank to 67.55 per cent from 49 per cent.
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