HDFC Bank, the country’s second largest private sector bank has filed an application with the Foreign Investment Promotion Board (FIPB) seeking approval for increasing its foreign shareholding limit, in accordance with the current prevailing guidelines. The bank has taken this step since the total foreign shareholding (FII and FDI) has crossed 49%.
The foreign shareholding in the bank as on December 13, 2013 was 52.18% of its paid-up capital. This includes investments through the FDI route in ADRs/GDRs of 17.01% which were raised in accordance with the then applicable guidelines, and other foreign holdings made under the FII route of 35.17%.
The Reserve Bank of India had earlier notified that the foreign shareholding through Foreign Institutional Investors (FIIs)/Non Resident Indians (NRI)/Persons of Indian Origin (PIO)/Foreign Direct Investment (FDI)/ADRs/GDRs in the bank has crossed the overall limit of 49% of its paid-up capital and that no further purchases of shares of the bank would be allowed through stock exchanges in India on behalf of FII/NRI/PIO/FDI/ADRs/GDRs.
