India plans to allow up to 49% foreign investment in state-run banks, draft says

The Indian government is planning to raise the direct foreign-investment cap for state-run banks from the current ~20% to 49%, while retaining at least 51% government ownership, according to sources familiar with discussions. The move aims to bring public banks closer in structure to private lenders, where foreign ownership limits currently stand at 74%. The proposed change could unlock additional foreign capital and support balance-sheet growth in state lenders, but requires regulatory approvals and safeguards to protect national interest.