HDFC Bank declines on buzz FIPB hikes bank's foreign investment ceiling

HDFC Bank declined 1.51% to Rs 915.25 on reports that FIPB has approved the bank's revised proposal to increase foreign investment ceiling in the bank to 74% from 49%

HDFC Bank declined 1.51% to Rs 915.25 at 1105 hrs on BSE after reports that the foreign investment promotion board has approved the bank's revised proposal to increase foreign investment ceiling in the bank to 74% from 49%.

The stock hit a high of Rs 940, also a record high for the stock. The stock hit a low of Rs 910.50 so far during the day. The stock had hit a 52-week low of Rs 618 on 4 February 2014.

On BSE, so far 1.2 lakh shares were traded in the counter as against average daily volume of 2.31 lakh shares in the past one quarter.

Currently, the Reserve Bank of India has put a ban on further purchases of shares of HDFC Bank by foreign institutional investors (FIIs). The RBI had on 16 December 2013 notified that foreign shareholding through 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 had crossed the overall limit of 49% of the bank's paid-up capital. Therefore, no further purchases of shares of this bank would be allowed through stock exchanges in India on behalf of FII/NRI/PIO/FDI/ADR/GDRs, the RBI had said at that time.