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Cabinet okays additional FDI of up to Rs. 24,000 crore in HDFC Bank

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The Union Cabinet today approved a proposal for grant of permission to private sector lender HDFC Bank to raise additional share capital in the form of foreign direct investment (FDI), up to a maximum of Rs. 24,000 crore, including premium.
 
This will be done in such a manner that the composite foreign shareholding in the bank shall not exceed 74% of the enhanced paid-up equity share capital of the bank, Finance Minister Piyush Goyal told journalists.
 
Foreign shareholding in HDFC Bank is currently at the level of 72.62 percent, he said.
 
"The decision would ensure that the composite foreign shareholding in the bank inclusive of all types of foreign investments, both direct and indirect, will not exceed 74% of the enhanced paid-up equity share capital of the bank. It will be subject to Foreign Direct Investment Policy conditionalities and other sectoral regulations / guidelines," an official press release said.
 
The proposed investment is expected to strengthen the capital adequacy ratio of the bank, it said.
 
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