Federal Bank has received Foreign Investment Promotion Board (FIPB) approval for increasing foreign shareholding limit in the bank to 74%. The private sector lender required clearance of the Cabinet Committee of Economic Affairs (CCEA) as the proposal involved foreign investments of about Rs 1,400 crore.
The Kerala-based bank had approached FIPB for permission to increase foreign shareholding after the Reserve Bank of India (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%.
As on September 2013, FIIs holding in the bank stood at 44.11%, DIIs (domestic institutional investors) hold 20.60% and others hold the remaining 35.29% stake in the bank.
