Federal Bank shares up 6.5% on RBI move

Shares of Federal Bank today surged 6.5 per cent after the RBI said foreign investors will be allowed to purchase stake in the private bank.
Federal Bank's scrip shot-up by 6.05 per cent to settle at Rs 91.15 on the BSE in a special trading session.
At the NSE, the stock rose by 6.52 per cent to close the day at Rs 91.55.
With the increase in foreign investment limit in Federal Bank to 74 per cent, foreign investors will be allowed to purchase stake in the private bank, RBI had said yesterday.
Federal Bank has been removed from the ban list and the restrictions placed on the purchase of shares have been withdrawn with immediate effect, the apex bank said.

"Equity shares of Federal Bank Ltd, can now be purchased through primary market and stock exchanges," RBI said in a notification yesterday.
The restrictions were removed as government approved increasing foreign investment in Federal Bank from 49 per cent to 74 per cent for its paid up equity share capital.