New Delhi: Private sector lender Federal Bank Thursday got FIPB approval for hiking foreign shareholding limit in the bank to 74 percent.
Since the proposal involved foreign investments of about Rs 1,400 crore, it would also require clearance of the Cabinet Committee of Economic Affairs (CCEA), a Finance Ministry official said after Federal Bank's application was approved in the meeting of Foreign Investment Promotion Board (FIPB).
The Kerala-based bank had approached FIPB for permission to increase foreign shareholding after the RBI prohibited foreign institutional investors, non-resident Indians and persons of Indian origin from purchasing shares in Federal Bank as its foreign holding had crossed 49 percent.
As on September 2013, holding of FIIs in the bank was 44.11 percent, of DII (domestic institutional investors) 20.60 percent and of others 35.29 percent.
The bank's scrip today closed at Rs 82.25, up 4.84 percent on BSE over its previous day's close.