Axis Bank hits seven month high on RBI nod to raise foreign shareholding up to 62%

The stock was up nearly 3% to Rs 529, its highest level since October 26, 2015 on the BSE in early morning trade.

Axis Bank was up nearly 3% to Rs 529, its highest level since October 26, 2015 on the BSE in early morning trade, after the Reserve Bank of India (RBI) allowed the bank to raise foreign shareholding limit to 62%, from the earlier limit of 49%.

"Foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) can now invest from the existing 49% up to 62%of the paid-up capital of Axis Bank under the Portfolio Investment Scheme (PIS)", RBI said in a notification.

The Reserve Bank further notified that the total foreign investment from all sources i.e. FIIs, RFPIs)/Foreign Direct Investment (FDI)/Non-Resident Indians (NRI)/ Persons of Indian Origin (PIO)/American Depository Receipts (ADR)/Global Depository Receipts (GDR) in the bank shall not exceed 62% of paid up capital.

At 09:24 AM, the stock was up 2% at Rs 525 on the BSE. A combined 1.98 million shares changed hands on the counter on the BSE and NSE so far.