positive
Recently
India plans to hike foreign-investment cap in state-run banks to 49%
No Image
Foreign investment cap in Indian state-run banks set to be raised to 49 %, signalling greater opening of sector to overseas capital.
India is reportedly planning to raise the foreign-investment limit in state-run banks to 49 % from the current 20 %, while still retaining at least 51 % government ownership. Discussions between the Reserve Bank of India and finance ministry are ongoing. The move comes amid increasing global interest in India’s banking sector and would align state-run banks more closely with private lenders, which allow up to 74 % foreign ownership. Market reaction was positive for PSU-bank stocks following the news.