HDFC Bank slips after RBI curbs FII stock purchase

HDFC Bank fell 2.59% to Rs 665 at 9:16 IST on BSE after the central bank restricted foreign institutional investors from buying additional shares in HDFC Bank as their shareholding has exceeded the limit.

The Reserve Bank of India (RBI) made the announcement after market hours on Monday, 16 December 2013.

Meanwhile, the BSE Sensex was up 93.37 points, or 0.45%, to 20,752.89.

On BSE, so far 14,000 shares were traded in the counter, compared with an average volume of 2.21 lakh shares in the past one quarter.

The stock hit a high of Rs 675.05 and a low of Rs 665.60 so far during the day. The stock hit a record high of Rs 727 on 30 May 2013. The stock hit a 52-week low of Rs 528 on 28 August 2013.

The stock had outperformed the market over the past one month till 16 December 2013, rising 6.35% compared with the Sensex's 1.28% rise. The scrip had also outperformed the market in past one quarter, rising 6.15% as against Sensex's 4.65% rise.

The large-cap company has an equity capital of Rs 478.67 crore. Face value per share is Rs 2.

Stakes held by overseas investors, including foreign institutional investors (FIIs), non-resident Indians (NRIs), persons of Indian origin (PIOs), foreign direct investment, asset development reserve and global depository receipts, in HDFC Bank have crossed the ceiling of 49% of its paid-up capital, the RBI said in a release.

Therefore no further purchases of the bank's shares will be allowed through the stock exchanges on behalf of overseas investors, it said.

Total foreign holding in HDFC Bank was 51.01% as at 30 September 2013, of which 33.61% was held by FIIs.

HDFC Bank's net profit rose 27.07% to Rs 1982.32 crore on 17.65% increase in total income to Rs 11937.69 crore in Q2 September 2013 over Q2 September 2012.

As at 30 September 2013, the total number of branches of (including extension counters) and ATM network of HDFC Bank stood at 3251 branches and 11177 ATMs respectively.

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