Government clears HDFC Bank's move to raise Rs.10,000 crore

New Delhi, Jan 28
The government Wednesday approved HDFC Bank's proposal to raise Rs.10,000 crore from foreign investors.

The Cabinet Committee on Economic Affairs (CCEA) gave its approval to the bank's proposal at its meeting held here.

"The CCEA gave its approval to the proposal of HDFC Bank for issuance of equity shares aggregating to an amount of Rs.10,000 crore to NRIs/FIIs/FPIs (non-resident Indians, foreign institutional investors or foreign portfolio investors)," the CCEA said in a statement.

According to the statement, the approval is subject to aggregate foreign shareholding not exceeding 74 percent of the post-issue paid-up capital.

"The approval would result in foreign investment of Rs.10,000 crore in the country," the statement added.

In December, the Foreign Investment Promotion Board (FIPB) cleared the HDFC Bank’s proposal to raise the capital from foreign investors.