Axis Bank, the country’s third largest private sector lender, has got the approval of the Cabinet Committee on Economic Affairs (CCEA) to raise its foreign shareholdingto 74 per cent from 62 per cent.
According to guidelines, foreign shareholding in a private bank cannot exceed 74 per cent. This 12 per cent hike of foreign shareholding is likely to bring in investments of Rs 13,000 crore. “With the approval, investment to the tune of Rs 12,973.14 crore will be received, with an estimated creation of 6,000 to 7,000 jobs over the next three years,” said a note by the CCEA. Earlier this year, Axis Bank’s proposal to raise foreign shareholding was forwarded by the Foreign Investment Promotion Board to the CCEA as the capital inflow was more than Rs 5,000 crore.