Cabinet nod for hiking foreign investment to 62% in Axis Bank

The approval would result in foreign investment of about Rs 7,250 crore in the country, a statement said.

hidden December 26, 2013 15:38:55 IST
 Cabinet nod for hiking foreign investment to 62% in Axis Bank

New Delhi: The government today approved increase in foreign investment limit to 62 percent entailing an inflow of about Rs 7,250 crore.

"The Cabinet Committee on Economic Affairs (CCEA) has approved the proposal of Axis Bank for increase in foreign investment from 49 percent to 62 percent.

 Cabinet nod for hiking foreign investment to 62 in Axis Bank

New funding for Axis Bank. Reuters

"(This is) subject to the aggregate foreign institutional investors holding not exceeding 49 percent of the paid up equity share capital of the bank," an official statement said.

The approval would result in foreign investment of about Rs 7,250 crore in the country, it said.

Following the inflow and hike in stake by foreign investors, the bank will become foreign-owned, whereby every future investment in seven subsidiaries will be governed by the FDI (foreign direct investment) policy, according to sources.

As per the FDI policy, downstream investment by an Indian company, "which is not owned and/or controlled by a resident entity/ies into another Indian company would be in accordance or compliance with the relevant sectoral conditions on entry route".

The bank's seven subsidiaries are Axis Capitals, Axis Finance Pvt Ltd, Axis Private Equity ltd, Axis Trustee Services Ltd, Axis Asset Management Company, Axis Mutual Fund Trustee Ltd and Axis UK Ltd.

As of June this year, foreign institutional investment (FII) holding in the bank was at 40.7 percent, while global depository receipts (GDRs) total 8.08 percent.

The promoters of the bank are Life Insurance Corporation, General Insurance Corporation, New India Assurance, National Insurance Company and Administrator of Specialised Undertaking of the Unit Trust of India.

PTI

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

Yes Bank case: CBI books HDIL promoters Wadhawans, others for Rs 200-cr loan fraud
Business

Yes Bank case: CBI books HDIL promoters Wadhawans, others for Rs 200-cr loan fraud

It is alleged that loans taken for Mack Star were transferred to settle HDIL liabilities to Yes Bank without intimation to its majority stakeholder and investor ODIL in a conspiracy orchestrated by the HDIL promoters, directors and auditors

Abu Dhabi Investment Authority to invest Rs 5,512.5 crore in RIL retail arm; joins Silver Lake, KKR among others
Business

Abu Dhabi Investment Authority to invest Rs 5,512.5 crore in RIL retail arm; joins Silver Lake, KKR among others

The investment by ADIA in Reliance Retail Ventures Limited in exchange for a 1.2 percent stake values the company, India’s largest retailer, at a pre-money equity value of Rs 4.285 lakh crore.

Invest India 2020: Narendra Modi invites Canadian businesses to invest in education, manufacturing and agri sectors
India

Invest India 2020: Narendra Modi invites Canadian businesses to invest in education, manufacturing and agri sectors

India has already received over $20 billion during the first 6 months of this year from across the globe at a time when COVID-19 pandemic is at a peak, the prime minister said.