South Indian Bank jumps after RBI removes FII stock purchase curbs

South Indian Bank rose 3.46% to Rs 20.95 at 14:19 IST on BSE after the central bank allowed foreign investors to buy shares in South Indian Bank as the foreign shareholding in the bank has gone below the prescribed limit.

Meanwhile, the BSE Sensex was up 87.51 points, or 0.42%, to 21,151.13.

On BSE, so far 48.92 lakh shares were traded in the counter, compared with an average volume of 3.39 lakh shares in the past one quarter.

The stock hit a high of Rs 21.05 and a low of Rs 20.40 so far during the day. The stock hit a 52-week high of Rs 28.90 on 22 January 2013. The stock hit a 52-week low of Rs 18.95 on 4 September 2013.

The stock had underperformed the market over the past one month till 17 January 2014, rising 2.02% compared with the Sensex's 2.19% rise. The scrip had also underperformed the market in past one quarter, falling 2.64% as against Sensex's 3.17% rise.

The small-cap company has an equity capital of Rs 134.22 crore. Face value per share is Re 1.

The foreign share holding through foreign institutional investors (FIIs)/non-resident Indians (NRIs)/persons of Indian origin (PIOs)/foreign direct investment (FDI)/American depository receipt (ADR)/global depository receipts (GDRs) in South Indian Bank have gone below the prescribed threshold caution limit stipulated under the extant foreign direct investment (FDI) policy, the Reserve Bank of India (RBI) said in a statement.

Hence, the restrictions placed on the purchase of shares of South Indian Bank are withdrawn with immediate effect, it said.

Equity shares of South Indian Bank can now be purchased through primary market and stock exchanges, RBI said.

Currently, FIIs are allowed to invest upto 49% of the paid-up capital of South Indian Bank under the portfolio investment scheme (PIS).

As at 31 December 2013, FIIs held 43.96% stake in South Indian Bank.

South Indian Bank's net profit rose 10.18% to Rs 141.31 crore on 11.79% growth in total income to Rs 1334.74 crore in Q3 December 2013 over Q3 December 2012.

South Indian Bank is a Kerala-based private-sector bank.

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