IDFC to bring down ceiling limit for foreign shareholding to get bank licence

IDFC is looking at steps to bring down the ceiling limit for foreign shareholding to 49.9% to comply with the guidelines for new bank license in private sector. The present ceiling is at 54% and the Foreign Shareholding as on December 6, 2013 was 51.27%.

If the vompsny does not receive the banking license from Reserve Bank of India (RBI), it wil take steps to increase ceiling on the foreign shareholding to 74%, which it was maintaining during the guidelines were announced.

The company today informed the Bombay Stock Exchange, "the Board of Directors on December 19, 2013 passed a Circular Resolution approving Postal Ballot process for seeking an enabling resolution from the shareholders to authorize the Board of Directors to keep reducing ceiling limit of the Foreign Shareholding from existing 54% to 49.9% in various stages as and when the actual Foreign Shareholding goes down."

At the time of the company making application to RBI for banking license, the then applicable ceiling limit on the shareholding of foreign shareholding was 74% and the actual foreign shareholding was around 53.17%.

Following the guidelines, it has undertaken to limit the ceiling to below 50% if it requires a bank licence and it has already restricted the foreign shareholding to 54% and is further planning to bring down the ceiling in various stages as and when the actual foreign shareholding goes down, said tha company.