Axis Bank on Tuesday got the Centre’s approval to increase its foreign stake to 74%, which will involve an investment of Rs 12,973 crore. The Prime Minister Narendra Modi-led Cabinet Committee on Economic Affairs cleared a proposal that included raising the foreign shareholding restriction from the current 62% at the bank, PTI reported.

Currently, private banks are allowed up to 74% foreign stake in their firms. Of this, the contribution of a foreign institutional investor is 49%. The Foreign Investment Promotion Board had referred the proposal from Axis Bank – one of India’s top private lenders – to the CCEA earlier this year, as it can only clear applications that involve a capital inflow of up to Rs 5,000 crore.