)
Private sector lender Federal Bank today got FIPB approval for hiking foreign shareholding limit in the bank to 74%.
Since the proposal involved foreign investments of about Rs 1,400 crore, it would also require clearance of the Cabinet Committee of Economic Affairs (CCEA), a Finance Ministry official said after Federal Bank's application was approved in the meeting of Foreign Investment Promotion Board (FIPB).
The Kerala-based bank had approached FIPB for permission to increase foreign shareholding after the RBI prohibited foreign institutional investors, non-resident Indians and persons of Indian origin from purchasing shares in Federal Bank as its foreign holding had crossed 49%.
As on September 2013, holding of FIIs in the bank was 44.11%, of DII (domestic institutional investors) 20.60% and of others 35.29%.
The bank's scrip today closed at Rs 82.25, up 4.84% on BSE over its previous day's close.
