Foreign investors pay top dollar for HDFC Bank

Stocks jump 9.5% after RBI lifts FII ban; Retreats to 3.75% as investment ceiling is hit

Foreign investors on Friday lapped shares of HDFC Bank after the Reserve Bank of India (RBI) lifted foreign portfolio investors' (FPIs’) buying restrictions on the stock. The scrip surged 9.5 per cent, the biggest intra-day gain in three years, to Rs 1,450 as FPIs scrambled to buy in the limited window.

The share price then retreated, to end only 3.7 per cent up at Rs 1,377, after RBI reimposed the ban once the 74 per cent FPI investment ceiling was hit. According to the policy, foreign investment in Indian banks is capped at 74 per cent.

HDFC Bank’s consistent record