BoB gains as RBI removes restrictions on purchases of shares by FIIs

Bank of Baroda was up 3.08% at Rs 157.40 at 12:35 IST on BSE after the Reserve Bank of India announced removal of restrictions placed on purchase of shares of the state-run bank by foreign institutional investors with immediate effect.

The stock hit high of Rs 157.70 and low of Rs 153.70 so far during the trading session. The scrip had hit 52-week low of Rs 137.50 on 29 June 2015. The stock had hit record high of Rs 228.90 on 23 January 2015.

On BSE, so far 2.13 lakh shares were traded in the counter as against average daily volume of 7.36 lakh shares in the past one quarter.

The large-cap state-run bank has an equity capital of Rs 442.30 crore. Face value per share is Rs 2.

The Reserve Bank of India (RBI) yesterday, 23 July 2015, announced removal of Bank of Baroda from caution list for the purpose of purchases of the shares of the state-run bank by foreign institutional investors (FIIs). The RBI said that the aggregate share holding by FIIs/Registered Foreign Portfolio Investors (RFPIs)/Non Resident Indian (NRI)/Persons of Indian Origin (PIO) under Portfolio Investment Scheme in Bank of Baroda has gone below the prescribed threshold caution limit under the extant FDI policy. Hence, the restrictions placed on the purchase of shares of the state-run bank are withdrawn with immediate effect, the RBI said. As per current norms, the ceiling on investment by FIIs/Registered Foreign Portfolio Investors (RFPIs)/Non Resident Indian (NRI)/Persons of Indian Origin (PIO) under Portfolio Investment Scheme is 20% for all state-run banks in India.

The Government of India holds 57.53% stake in Bank of Baroda (as per the shareholding pattern as on 30 June 2015).

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