The Cabinet Committee on Economic Affairs has approved the proposal of M/s. Federal Bank Limited for increase in foreign investment to 74 percent subject to the aggregate Foreign Institutional Investors’ (FIIs) shareholding not exceeding 49 percent of the paid up equity share capital of the bank.

The approval would result in foreign investment of approximately Rs.1400 crore in the country.

Foreign investment cap raised permitting majority foreign ownership subject to an FII shareholding ceiling and conditions. Approval granted to increase foreign investment in Federal Bank Limited to 74 percent, subject to an aggregate Foreign Institutional Investors shareholding cap of 49 percent of the bank's paid-up equity capital, allowing majority foreign ownership while preserving a specified sub-cap for institutional investors and contingent on compliance with the stated equity allocation limits.