HDFC Bank has sent a fresh petition to government on raising its foreign investment limit up to 74 percent.
The bank in its petition has reiterated that parent HDFC’s stake in the bank is not foreign.
HDFC Bank, late last year, had approached the Foreign Investment Promotion Board (FIPB) for increasing the foreign holding in the bank to 67.55 percent from 49 percent.
If the proposal of the bank to raise foreign investment to 67.55 percent gets accepted, it would exceed the cap of 74 percent, after taking into account parent HDFC Ltd’s stake.
The Department of Economic Affairs (DEA) and DIPP (Department Of Industrial Policy & Promotion) are of view that promoter HDFC Ltd’s 22.56 percent stake in HDFC Bank is foreign investment.
“It is a very complex issue we are dealing with it but I can assure you we are seized of the matter,” Economic Affairs Secretary Arvind Mayaram had said on Thursday.
Though a proper timeline has not been conveyed, but the FIPB board is likely to meet end of August or early September to look into the matter.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
