IndusInd Bank jumps after RBI removes FII stock purchase curbs

IndusInd Bank rose 1.07% to Rs 849 at 9:28 IST on BSE after the central bank allowed foreign investors to buy shares in IndusInd Bank as the foreign shareholding in the bank has gone below the prescribed limit.

Meanwhile, the BSE Sensex was up 159.37 points, or 0.63%, to 25,361.27.

On BSE, so far 56,000 shares were traded in the counter, compared with an average volume of 1.10 lakh shares in the past one quarter.

The stock hit a high of Rs 860 and a low of Rs 842.85 so far during the day. The stock hit a record high of Rs 988.50 on 31 July 2015. The stock hit a 52-week low of Rs 594.50 on 8 October 2014.

The stock had underperformed the market over the past one month till 4 September 2015, sliding 11.83% compared with 10.22% fall in the Sensex. The scrip had, however, outperformed the market in past one quarter, falling 0.53% as against Sensex's 6.01% decline.

The large-cap company has an equity capital of Rs 591.82 crore. Face value per share is Rs 10.

The Reserve Bank of India (RBI) on Friday, 4 September 2015, notified that the aggregate share holdings in IndusInd Bank by non-resident Indians (NRI)/persons of Indian origin (PIO)/foreign institutional investors (FII)/registered foreign portfolios investors (RFPIs) and through global depository receipts (GDR)/American depository receipts (ADR)/foreign direct investment (FDI) in the primary/secondary markets have gone below the prescribed threshold limit stipulated under the extant FDI policy. Hence the restrictions placed on the purchase of shares of the above bank are withdrawn with immediate effect. RBI also notified that the equity shares of Induslnd Bank can now be purchased through primary market and stock exchanges.

IndusInd Bank's net profit rose 24.7% to Rs 525.04 crore on 20% growth in total income to Rs 3447.84 crore in Q1 June 2015 over Q1 June 2014.

IndusInd Bank is a leading private sector bank in India.

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