FIPB clears Kotak Mahindra Bank’s proposal to raise foreign investments

The Foreign Investment Promotion Board has cleared (FIPB) Kotak Mahindra Bank's proposal to raise foreign investment limit in the lender to 55%.

According to a report by ET, the FIPB cleared the proposal following the opinion given by the Department of Financial Services on the matter. The FIPB had initially deferred the decision in the past.

It should be noted that RBI had barred overseas investments in the bank as foreign shareholding hit the permissible threshold following the merger of ING Vysya Bank. It is then that Kotak Bank approached the FIPB, which is headed by Finance Secretary Rajiv Mehrishi.

Kotak Bank had reached the maximum cap for investments from FIIs, FPIs and foreign banks after it reached 48.55% in the merged entity.