FII can invest upto 74% in Federal Bank

The Cabinet Committee on Economic Affairs has approved the proposal of Federal Bank for increase in foreign investment up to 74%. This nod is, however, subject to the condition that aggregate foreign institutional investor shareholding will not exceed 49% of the paid-up capital of the bank. The approval will result in a foreign investment of Rs 1,400 Cr into the country, an official release said. As at end December 2013, FIIs had an aggregate holding of 43.34% in the private sector lender.