Axis Bank gains after RBI allows RFPIs to buy up to 62% stake

Axis Bank rose 1.86% to Rs 525.20 at 09:21 IST on BSE after the Reserve Bank of India notified that registered foreign portfolios investors can now invest up to 62% of the paid up capital of the company.

Meanwhile, the S&P BSE Sensex was up 54.77 points or 0.21% at 26,715.75

On BSE, so far 1.49 lakh shares were traded in the counter as against average daily volume of 7.73 lakh shares in the past one quarter. The stock hit a high of Rs 529.50 and a low of Rs 523.10 so far during the day. The stock had hit a 52-week high of Rs 613.40 on 16 July 2015. The stock had hit a 52-week low of Rs 366.65 on 18 January 2016.

The large-cap bank has equity capital of Rs 477.18 crore. Face value per share is Rs 2.

The Reserve Bank of India (RBI) yesterday, 31 May 2016, notified that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 62% of the paid-up capital of Axis Bank, from existing 49% under the Portfolio Investment Scheme (PIS). The central bank further notified that the total foreign investment from all sources i.e. Foreign Institutional Investors (FII)/Registered Foreign Portfolios Investors (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. The central bank has stated that Axis Bank has passed resolutions at its board of directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs. The purchases could be made through primary market and stock exchanges, RBI said.

Axis Bank's net profit fell 1.2% to Rs 2154.28 crore on 9.8% rise in total income to Rs 13592.97 crore in Q4 March 2016 over Q4 March 2015.

Axis Bank is one of the biggest private sector banks in India.

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