The government on Wednesday approved the proposal of HDFC Bank to raise additional capital of Rs 24,000 crore by selling equity to foreign investors to fund its business growth. The decision was taken at a Union Cabinet meeting chaired by Prime Minister Narendra Modi.

The additional capital includes premium over and above the previous approved limit of Rs 10,000 crore, according to a statement released by Cabinet Committee on Economic Affairs.

“The decision would ensure that the composite foreign shareholding in the bank inclusive of all types of foreign investments, both direct and indirect, will not exceed 74% of the enhanced paid-up equity share capital of the bank,” Union minister Piyush Goyal said, according to PTI. It will also be subject to conditions under Foreign Direct Investment Policy and other sectoral regulations.

At present, the FDI in the banks stands at 72.62%. As per Reserve Bank of India guidelines, foreign holding in public sector banks in India cannot go beyond 74%.

Of the additional Rs 24,000 crore, Rs 8,500 crore is proposed to be allotted to the bank’s promoter HDFC Ltd, on a preferential basis.