Foreign institutional investors (FIIs) have been allowed to raise stake in Karur Vysya Bank (KVB) to up to 40%. The bank has passed a resolution at its Board of Directors’ Meeting and a resolution in its Annual General Meeting agreeing for the purchase of its equity shares by FIIs up to 40% of their paid-up capital through primary/secondary markets in India.
Reserve Bank's approval to the Bank for raising FII investment limit to 40% is subject to the condition that aggregate foreign investment in the bank should also not exceed the composite sectoral cap of 49% (49% under Automatic Route & beyond 49% to 74% under Government Route) as prescribed by the Government from time to time. Under the existing conditions, RBI should be informed about acquisition or transfer of shares of 5 per cent and more of a private sector bank by FIIs.
Karur Vysya Bank is among six old generation private sector banks that have been identified by the Reserve Bank of India (RBI) to implement Speed Clearing at Mumbai.
Reserve Bank's approval to the Bank for raising FII investment limit to 40% is subject to the condition that aggregate foreign investment in the bank should also not exceed the composite sectoral cap of 49% (49% under Automatic Route & beyond 49% to 74% under Government Route) as prescribed by the Government from time to time. Under the existing conditions, RBI should be informed about acquisition or transfer of shares of 5 per cent and more of a private sector bank by FIIs.
Karur Vysya Bank is among six old generation private sector banks that have been identified by the Reserve Bank of India (RBI) to implement Speed Clearing at Mumbai.
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