Narendra Modi approves Rs 24,000 crore FDI for HDFC Bank

NEW DELHI: The Union Cabinet chaired by the Prime Minister of India Narendra Modi has approved Rs 24,000 crore FDI for HDFC Bank. The bank had sought approval for maintaining the permissible foreign holding in the bank up to 74% of the total paid-up, out of which the FII sub-limit would be 49 per cent and the balance 25% would be foreign direct investment (FDI).nnThe Cabinet also approved three-year-long Rs 2,025 crore plan for higher education in the agricultural sector.nn”The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the proposal for grant of permission to M/s. HDFC Bank Ltd. to raise additional share capital of up to a maximum of Rs. 24,000 crore, including premium, over and above the previous approved limit of Rs. 10,000 crore, such that the composite foreign shareholding in the Bank shall not exceed 74% of the enhanced paid-up equity share capital of the bank,” said Cabinet Committee on Economic Affairs (CCEA) in a statement.nnThe 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 / guidelines.nnThe proposed investment is expected to strengthen the capital adequacy ratio of the bank.