The Cabinet Committee on Economic Affairs (CCEA) has approved the proposal of Federal Bank for increase in foreign investment to 74%, subject to the aggregate Foreign Institutional Investors' (FIIs) shareholding not exceeding 49% of the paid up equity share capital of the bank.

The approval would result in foreign investment of approximately Rs 14 billion in the country.

Shares of the bank gained Rs 2.05, or 2.48%, to trade at Rs 84.70. The total volume of shares traded was 377,190 at the BSE (1.10 p.m., Tuesday).