Federal Bank gains on CCEA nod for foreign investment

Federal Bank rose 1.9% to Rs 75 at 12:31 IST on BSE after the bank said that CCEA has accorded its approval for foreign equity participation upto 74% of the paid-up capital of the bank, with sub-limit of 49% by FIIs and 24% for NRIs.

The announcement was made during trading hours today, 25 February 2014.

Meanwhile, the S&P BSE Sensex was down 13.90 points or 0.07% at 20,797.54.

On BSE, so far 2.20 lakh shares were traded in the counter as against average daily volume of 2.34 lakh shares in the past one quarter.

The stock hit a high of Rs 75.90 and a low of Rs 73.50 so far during the day. The stock had hit a 52-week high of Rs 101.23 on 28 February 2013. The stock had hit a 52-week low of Rs 44.25 on 4 September 2013.

The stock had underperformed the market over the past one month till 24 February 2014, sliding 9.64% compared with the Sensex's 1.52% fall. The scrip had also underperformed the market in past one quarter, declining 5.09% as against Sensex's 2.94% rise.

The mid-cap company has equity capital of Rs 171.07 crore. Face value per share is Rs 2.

Federal Bank said that the Cabinet Committee of Economic Affairs (CCEA) has vide its letter dated 12 February 2014 (received on 25 February 2014) has accorded its approval for foreign equity participation upto 74% of the paid up capital of the Bank, with sub-limit of 49% by foreign institutional investors (FIIs) and 24% for NRIs.

Federal Bank's net profit rose 9.2% to Rs 230.13 crore on 9.9% growth in total income to Rs 1895.92 crore in Q3 December 2013 over Q3 December 2012.

Federal Bank is a leading private sector bank in India.

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