Govt mulls raising FDI limit in private banks to 100% - Angel Broking

To increase foreign funds inflows into the country, the government is considering to relax investment norms by increasing foreign direct investment (FDI) limit to 100% for private banks from existing 74%. One of the options being considered is allowing an additional 26% increase through the approval route.

This will benefit Private sector banks in our Universe as this will entail further FII investment in Private sector banks and enhance their capital base. The current investment in HDFC Bank and ICICI Bank are already near the current limit and should aid further investments in the Banks.

Source : Equity Bulls

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