The Foreign Investment Promotion Board (FIPB) on Friday cleared HDFC Bank’s FDI proposal.
Late last year, HDFC Bank had approached the FIPB for increasing the foreign holding in the bank to 67.55 percent from 49 percent.
The Department of Economic Affairs and DIPP (Department of Industrial Policy & Promotion) are of the view that promoter HDFC Ltd’s 22.56 percent stake in HDFC Bank is foreign investment.
Foreign entities, including FIIs, hold more than 77.36 percent in HDFC Ltd.
As per the existing norms, foreign holding in a bank cannot exceed 74 percent.
At the end of June 2014, foreign institutional investment (FII) in HDFC Bank was 33.93 percent, according to BSE data.