FIPB to consider Kotak Bank's FDI proposal on 28 May

New Delhi: Inter-ministerial body FIPB will on 28 May take up Kotak Mahindra Bank’s proposal for raising foreign investment limit in the bank to 55 percent, along with 47 other FDI applications.

A total of 48 investment proposals are listed on the agenda of 218th meeting of the Foreign Investment Promotion Board (FIPB), scheduled for 28 May.

FIPB, chaired by finance secretary Rajiv Mehrishi, can recommend foreign investment proposals worth up to Rs 3,000 crore to the finance minister for approval.

Private sector lender Kotak Mahindra Bank has approached FIPB to seek the nod for raising foreign investment cap in the bank to 55 percent.

The Reserve Bank has barred overseas investments in the bank after foreign shareholding in it hit the permissible threshold following merger of Kotak Bank with ING Vysya Bank.

The FIPB had deferred decision on the proposal in its meeting held on 30 April.

Other proposals listed on the FIPB agenda include that of Torrent Pharmaceuticals, Strides Arcolab, Star India, Eros International Media, Reliance Golbalcom and Indian Rotocraft.

India allows FDI in most of the sectors through automatic route, but in certain segments considered sensitive for the economy and security, the proposals have to be first cleared by FIPB.

During last fiscal, FIPB had received 350 proposals and in 11 meetings, it cleared 241 of them.

PTI