How much Foreigners have invested in PSU Banks, Check Foreign Shareholding in Public Sector Banks
Foreign Shareholding in Public Sector Banks: Did you know FDI inflow in banking sector in 2024-25 was $115.47 million. In 2023-24, FDI inflow was $377.34 million. In 2022-23, FDI inflow was $897.76 million.
According to the Reserve Bank of India’s (RBI) rules on acquiring and holding shares in banks, if any person or entity wants to buy shares in a bank that would give them 5% or more of the bank’s paid-up capital or voting rights, they must first take permission from the RBI. In simple terms, no one can own or control 5% or more of a bank without RBI’s prior approval.
How much FDI is permitted in PSU Banks?
The FDI limit in PSBs and private sector banks is 20% and 74%, respectively. In case of private sector banks, up to 49% of FDI is through the automatic route and beyond 49% and up to 74%, the government route is applicable.
FDI inflow in last 3 years
| S.N | Financial Year | FDI Equity Inflow in Banking Sector (USD million) |
|---|---|---|
| 1 | 2022-23 | 897.76 |
| 2 | 2023-24 | 377.34 |
| 3 | 2024-25 | 115.47 |
Now, let’s have a look at FDI in India’s Public Sector Banks. How much ownership foreigners hold in India’s PSU Banks.
Foreign Shareholding in Public Sector Banks (as on 31.03.2025)
| S.N | Name of Public Sector Bank | % Foreign Shareholding |
|---|---|---|
| 1 | Bank of Baroda | 9.43 |
| 2 | Bank of India | 3.89 |
| 3 | Bank of Maharashtra | 1.93 |
| 4 | Canara Bank | 10.55 |
| 5 | Central Bank of India | 1.27 |
| 6 | Indian Bank | 4.74 |
| 7 | Indian Overseas Bank | 0.27 |
| 8 | Punjab and Sindh Bank | 0.76 |
| 9 | Punjab National Bank | 5.85 |
| 10 | State Bank of India | 11.07 |
| 11 | UCO Bank | 0.06 |
| 12 | Union Bank of India | 7.48 |
This Foreign shareholding includes FDI, FPI/FII/NRI/OCB holdings. Foreign shareholding including FDI, FPI/FII, NRI and OCB holdings means the total percentage of shares in a bank that are owned by all categories of foreign investors combined. FDI (Foreign Direct Investment) refers to long-term strategic investment by foreign companies or institutions, often involving significant ownership and sometimes management influence.
FPI (Foreign Portfolio Investment), earlier known as FII (Foreign Institutional Investor), refers to foreign investors such as mutual funds, pension funds and other institutions that invest in shares through the stock market without seeking control over the company. NRI (Non-Resident Indian) holdings include investments made by Indian citizens living abroad, who are treated as foreign investors for regulatory purposes because their funds originate outside India.
OCB (Overseas Corporate Body) refers to entities mainly owned by NRIs that were earlier permitted to invest in India. When all these categories are added together, they form the total foreign shareholding percentage in a bank.
