Will FDI Limit be increased to 49% in PSU Banks? Govt says NO; Check Last 5 Year FDI Data
| Get instant news updates: Click here to join our Whatsapp Group |
The Government of India has clearly stated that the FDI limit in public sector banks will not be increased upto 49%. The Government stated this in the Parliament. But as per several media reports, the proposal to increase FDI in PSU Banks is already under discussion. Earlier, the Government had also stated that there is no ongoing proposal of bank mergers. Click here to read government’s reply on Bank Mergers.
In terms of Banking Companies (Acquisition and Transfer of Undertakings) Act 1970/80 and Foreign Exchange Management (Non-Debt Instruments) Rules 2019, the FDI limit in PSBs and Private Sector Banks are 20% and 74% respectively. In case of Private Sector Banks, upto 49% of FDI is through automatic route and beyond 49% and upto 74%, Government Route is applicable.
| FDI* inflow in Public Sector Banks | |||||||
| Mar-20 | Mar-21 | Mar-22 | Mar-23 | Mar-24 | Mar-25 | ||
| S. No | Name of Bank | %holding | %holding | %holding | %holding | %holding | %holding |
| 1 | Bank of Baroda | 4.89% | 7.15% | 9.52% | 11.28% | 12.75% | 9.43% |
| 2 | Bank of India | 0.40% | 0.48% | 0.72% | 2.67% | 4.52% | 3.89% |
| 3 | Bank of Maharashtra | 0.20% | 0.16% | 0.27% | 0.39% | 1.25% | 1.93% |
| 4 | Canara Bank | 3.31% | 4.59% | 8.48% | 8.95% | 10.57% | 10.55% |
| 5 | Central Bank of India | 0.20% | 0.06% | 0.11% | 0.20% | 0.17% | 1.27% |
| 6 | Indian Bank | 2.74% | 1.02% | 1.73% | 4.17% | 5.29% | 4.74% |
| 7 | Indian Overseas Bank | 0.23% | 0.12% | 0.13% | 0.18% | 0.10% | 0.27% |
| 8 | Punjab and Sind Bank | 0.93% | 0.04% | 0.03% | 0.04% | 0.05% | 0.76% |
| 9 | Punjab National Bank | 2.30% | 3.09% | 1.56% | 1.88% | 4.97% | 5.85% |
| 10 | State Bank of India | 10.95% | 11.33% | 11.31% | 11.05% | 12.35% | 11.07% |
| 11 | UCO Bank | 0.14% | 0.13% | 0.03% | 0.11% | 0.06% | 0.06% |
| 12 | Union Bank of India | 1.34% | 0.73% | 1.30% | 1.78% | 7.07% | 7.48% |
