Question: Recently, the Cabinet Committee on Economic Affairs approved the proposal to increase of how much amount of maximum share capital by M / s HDFC Bank Limited?
(a) 24,000 crores
(b) 25,000 crores
(c) 30,000 crores
(d) 35,000 crores
Answer: (a)
Related Facts:
- On June 13th, 2018, The Union Cabinet chaired by the Prime Minister Shri Narendra Modi has approved the proposal for grant of permission to M/s. HDFC Bank Ltd. to raise additional share capital of up to a maximum of Rs. 24,000 crore.
- This including premium, over and above the previous approved limit of Rs. 10,000 crore, 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 conditionality and other sectoral regulations / guidelines.
- The proposed investment is expected to strengthen the capital adequacy ratio of the bank.
See also the links below:
http://pib.nic.in/newsite/PrintHindiRelease.aspx?relid=72726
http://pib.nic.in/newsite/PrintRelease.aspx?relid=179928
https://scroll.in/latest/882556/cabinet-approves-hdfc-banks-proposal-to-raise-rs-24000-crore-as-fdi
http://www.thehindu.com/business/Industry/cabinet-clears-hdfc-banks-proposal-to-raise-24000-crore-via-fdi/article24155919.ece