Axis Bank rises 2% on RBI move…


Mumbai : Share prices of  Axis Bank gained 2.7 percent intraday Wednesday on approval from Reserve Bank of India (RBI) to increase in investment limit by foreign investors. "The RBI has notified that foreign institutional investors (FIIs)/ registered foreign portfolios investors (REPIs) can invest from existing 49 percent up to 62 percent of the paid up capital of the company under the portfolio investment scheme," as per company release. 

The stock gained 2.69% to Rs 529.50 on the BSE. On the National Stock Exchange (NSE), it went up 2.76% to Rs 529.45. At 1347 hours the shares were trading at Rs 519, up Rs 3.40 or 0.66% on the BSE and on the National Stock Exchange (NSE), the shares were trading at Rs 519, up Rs 3.80 or 0.74%.

"Foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) can now invest from the existing 49% up to 62% of the paid-up capital of Axis Bank under the Portfolio Investment Scheme (PIS)," RBI had said in a notification on Tuesday. It further said total foreign investment from all sources in the bank shall not exceed 62% of the paid-up capital.

The decision was taken after passage of resolutions at the level of the board of directors and through a special resolution by the shareholders, agreeing to enhance the limit for purchase of its shares and convertible debentures by FIIs/RFPIs.