HDFC Bank dips 2% as RBI curbs share purchase by FIIs

The stock opened at Rs 675 and touched a low of Rs 662.6 in early deals. A combined 921,024 shares changed hands in early morning deals

HDFC Bank is trading over 2% lower on the Bombay Stock Exchange (BSE) at Rs 667 levels after the Reserve Bank of India (RBI) barred foreign institutional investors (FIIs) from purchasing shares in the bank after their shareholding reached the maximum prescribed limit.

“The Reserve Bank of India today notified that foreign share holding through Foreign Institutional Investors (FIIs)/Non Resident Indian (NRI)/Persons of Indian Origin (PIO)/Foreign Direct Investment (FDI)/Asset Development Reserve (ADR)/ Global Depository Receipt (GDR) in HDFC Bank has crossed the overall limit of 49% of its paid-up capital. Therefore, no further purchases of share of this bank would be allowed through stock exchanges in India on behalf of FII/NRI/PIO/FDI/ADR/GDRs,” an official RBI release said.

Meanwhile, the bank garnered the maximum amount of funds via the concessional swap window for FCNR(B) deposits. The window, made available by the RBI to banks in order to attract  dollar inflows to stabilise the rupee, was open from September 4 to November 30.

The stock opened at Rs 675 and touched a low of Rs 662.6 in early deals. A combined 921,024 shares changed hands on both the exchanges (BSE and NSE) in early morning deals.