CCEA allows Axis Bank to raise foreign shareholding to 74%

Government today approved Axis Bank's proposal to raise foreign shareholding to 74 per cent, a move likely to bring FDI worth Rs 13,000 crore into the country and create up to 7,000 jobs over three years.
The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, has approved increase in foreign investment from the current approved level of 62 per cent to 74 per cent of the total paid up share capital of the Axis Bank on a fully fungible basis.
"With the approval, foreign direct investment to the tune of Rs 12,973.14 crore will be received in the country with an estimated creation of 6,000 to 7,000 jobs over the next three years," said Telcom Minister Ravi Shankar Prasad after the CCEA meeting.

The foreign investment will be by way of Foreign Institutional Investors/ Foreign Portfolio Investors/ Non-Resident Indians, Foreign Director Investment covering ADRs/ GDRs and Indirect Foreign Investment.
Earlier this year, inter-ministerial panel FIPB headed by Economic Affairs Secretary Shaktikanta Das recommended the Axis Bank's proposal to the CCEA as the capital inflow was over Rs 5,000 crore.
One of the leading private lenders, Axis Bank started operations in 1994 and is promoted by financial institutions such as UTI, LIC, GIC and its subsidiaries.
Axis Bank's share closed at Rs 539.60 at BSE, down 0.79 per cent from the previous close.