New Delhi, Jan 20 (IANS) The Indian government Monday approved a proposal to increase foreign investment in Federal Bank Ltd to 74 percent.

The Cabinet Committee on Economic Affairs chaired by Prime Minister Manmohan Singh gave its nod to the proposal that is expected to result in foreign investment inflow of nearly Rs.1,400 crore in the country.

The CCEA has approved the proposal of Federal Bank Ltd for increase in foreign investment to 74 percent subject to the aggregate Foreign Institutional Investors (FIIs) shareholding not exceeding 49 percent of the bank’s paid up equity share capital, said an official statement released after the cabinet meet.