RBI allows foreign investment in IndusInd Bank

The Reserve Bank of India (RBI) today said restrictions imposed on purchase of IndusInd Bank's shares by overseas investors have been withdrawn with immediate effect as foreign investors' shareholding in the bank has gone below the threshold limit.

"...The aggregate shareholdings by Foreign Institutional Investors (FIIs) or NRIs or Persons of Indian Origin (PIOs) under Portfolio Investment Scheme (PIS) in Indusind Bank Ltd have gone below the prescribed threshold limit stipulated under the FDI Policy," RBI said in a statement.

Therefore, "the restrictions placed on the purchase of shares of the bank are withdrawn", it said.

The apex bank, however, said that further purchases of equity shares of IndusInd Bank would be allowed only after obtaining prior approval of the RBI.

In December last year, the RBI had said it will not allow foreign investors to purchase shares of IndusInd Bank as their investment in the private lender has reached the trigger limit.