The Federal Bank has filed its application to the Foreign Investment Promotional Board, for the purpose of requesting to increase the limit of foreign shareholding to 65%. On paper, only 49% of foreign shareholding has been granted by the RBI. The bank has crossed the limit of 49% and  on 20^th of August 2013, the RBI instructed all the foreign institutional investors, NRIs, and the Indian origin individuals should not purchase the shares, from the Federal Bank. Due to this, the bank has been forced to increase the abroad shareholdings to 65%, so that it can continue its business. Since the value of INR is sliding continually, Indian Banking sector has been affected terribly and they are trying to recover from the current critical position. The Axix Bank has already applied similar application to the FIPB. The HDFC and the HDFC deputy chairman said that it is hardly possible to recover from this state of condition, as the shares of this bank came down crashing.