HDFC to raise Rs 240 billion

The HDFC Bank recently received an approval to raise additional capital Rs 240 billion by selling equity to foreign investors in order to fund its business growth.

It includes premium, over and above the previous approved limit of Rs 100 billion, that the composite foreign shareholding in the bank should not exceed 74 per cent of the enhanced paid-up equity share capital of the bank, said Finance Minister Piyush Goyal at a Cabinet meeting chaired by PM Modi. With this capital raising, FDI in the bank will hit the regulatory ceiling of 74 %. Currently, the FDI in the banks stands at 72.62 %.