Cabinet clears HDFC Bank's proposal to raise Rs 24,000 crore via FDI

New Delhi: The government on Wednesday gave approval to HDFC Bank to raise Rs 24,000 crore in foreign direct investment (FDI) to fund its business growth.

With the raising of this capital, FDI in the bank would hit the regulatory ceiling of 74 per cent, Finance Minister Piyush Goyal said after the Cabinet meeting chaired by Prime Minister Narendra Modi here.

Currently, the FDI in the banks stands at 72.62 per cent.

Of the additional Rs 24,000 crore, Rs 8,500 crore is proposed to be allotted to HDFC Ltd, the promoter, on a preferential basis.