Axis Bank gains as RBI raises foreign investment ceiling

Axis Bank was up 1.39% to Rs 572.60 at 9:34 IST on BSE after the Reserve Bank of India on Friday, 15 July 2016, notified increase in foreign investment ceiling in the bank.

Meanwhile, the S&P BSE Sensex was up 142.62 points or 0.51% at 27,979.12.

On BSE, so far 53,000 shares were traded in the counter as against average daily volume of 7.35 lakh shares in the past one quarter. The stock hit a high of Rs 574.50 and a low of Rs 569 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 stock had outperformed the market over the past one month till 15 July 2016, gaining 6.86% compared with Sensex's 4.15% rise. The scrip had also outperformed the market in past one quarter, advancing 28.13% as against Sensex's 8.62% rise.

The large-cap private sector bank has equity capital of Rs 477.51 crore. Face value per share is Rs 2.

The Reserve Bank of India (RBI) on Friday, 15 July 2016 notified that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 74% from existing 62% of the paid up capital of the bank under the Portfolio Investment Scheme (PIS). The central bank notified that the total foreign investment in the bank shall not exceed 74% of paid up capital. The RBI has stated that the 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.

Axis Bank's net profit fell 1.2% to Rs 2154.28 crore on 9.8% growth 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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