RBI Rejects HDFC Bank’s Request to Declassify HDFC as FII

The Reserve Bank of India has reportedly rejected HDFC Bank’s plea to declassify its parent Housing Development Finance Corporation Limited (HDFC) as a foreign institutional investor (FII).

The RBI has rejected the request citing current rules which require HDFC to be classified as FII. The move will have an impact on HDFC Bank’s fundraising program from qualified institutional placement (QIP). FIIs being barred from investing in the bank will limit the fundraising options as it can only be raised from domestic investors.
News In-a-Line:
RBI- Rejected HDFC Bank’s plea to declassify- HDFC Ltd as a foreign institutional investor (FII).

Static/Current Takeaway Points Important for IBPS PO Mains 2017 Exam-

  1. HDFC Bank CEO- Aditya Puri, Headquarter- Mumbai.
  2. HDFC Bank- India’s largest lender by market capitalization.
Source- The Moneycontrol