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Govt confirms 74% FDI in private banks
New Delhi, Mar 06: The government issued a formal notification on Friday of its decision to allow 74 percent foreign direct investment (FDI) in private sector banks, up from 49 percent.
New Delhi, Mar 06: The government issued a formal notification on Friday of its decision to allow 74 percent foreign direct investment (FDI) in private sector banks, up from 49 percent.
"The aggregate foreign investment in a private bank from all sources will be allowed up to a maximum of 74 percent of the paid up capital of the bank," a government statement said.
The decision was made by the government in January.
It statement said the new FDI cap would include investments from Foreign Institutional Investors (FII), issues of American Depositary and Global Depositary Receipts, and private placements of shares.
"The FII investment limit will continue to be within 49 percent," it said.
It statement said the new FDI cap would include investments from Foreign Institutional Investors (FII), issues of American Depositary and Global Depositary Receipts, and private placements of shares.
"The FII investment limit will continue to be within 49 percent," it said.
There had previously been a cap of 49 percent on FDI, and no clear limits for other forms of foreign investments.
Analysts say private banks like Bank of Punjab Ltd, Bank of Rajasthan Ltd and Global Trust Bank Ltd, which have been reported by local media to be on the lookout for strategic partners, should be immediate gainers from the announcement. Bureau Report
The decision was made by the government in January.
It statement said the new FDI cap would include investments from Foreign Institutional Investors (FII), issues of American Depositary and Global Depositary Receipts, and private placements of shares.
"The FII investment limit will continue to be within 49 percent," it said.
It statement said the new FDI cap would include investments from Foreign Institutional Investors (FII), issues of American Depositary and Global Depositary Receipts, and private placements of shares.
"The FII investment limit will continue to be within 49 percent," it said.
There had previously been a cap of 49 percent on FDI, and no clear limits for other forms of foreign investments.
Analysts say private banks like Bank of Punjab Ltd, Bank of Rajasthan Ltd and Global Trust Bank Ltd, which have been reported by local media to be on the lookout for strategic partners, should be immediate gainers from the announcement. Bureau Report