The Union Cabinet chaired by the Prime Minister Narendra Modi has approved the proposal for grant of permission to HDFC Bank to raise additional share capital of up to a maximum of Rs 240 billion, including premium, over and above the previous approved limit of Rs. 100 billion, such that the composite foreign shareholding in the Bank shall not exceed 74% of the enhanced paid-up equity share capital of the bank.

The decision would ensure that the composite foreign shareholding in the bank inclusive of all types of foreign investments, both direct and indirect, will not exceed 74% of the enhanced paid-up equity share capital of the bank. It will be subject to Foreign Direct Investment Policy conditionalities and other sectoral regulations / guidelines.
 
The proposed investment is expected to strengthen the capital adequacy ratio of the bank.