Mumbai: Axis Bank on Tuesday said it has applied to the Foreign Investment Promotion Board (FIPB) to raise its foreign shareholding limit.
"The bank has filed an application with the FIPB to increase the foreign shareholding limit," Axis Bank said in a release. The country's third largest private sector bank, however, did not explain what is the percentage increase it is looking at.
It could be noted that RBI had last week banned further investments through global depository receipts (GDRs), American depository receipts (ADRs), foreign direct investment (FDI), non-resident Indian (NRIs), persons of Indian origin (PIOs), FIIs in Axis Bank as the overall limit of 49 percent of its paid-up capital has already been breached by these forms of shareholding.
"No further purchases of shares of the Axis Bank would be allowed through stock exchanges on behalf of GDRs, ADRs, FDI, NRIs, PIOs, or FIIs," RBI had said on August 14.
The foreign shareholding as on June 30, 2013, was 48.96 percent which included investments through the FDI route in the form of GDRs of 8.08 percent and other foreign holdings, including FIIs of 40.88 percent, Axis Bank said in the release.
It can be noted tha all the private sector lenders have higher foreign shareholding. Early this year, the RBI had said Yes Bank also had breached the 49 percent cap.
Yesterday, Axis Bank became the second large private sector lender after HDFC Bank to raise its base rate by 0.25 percent to 10.25 percent.
Banks have been forced to revise their base rates after RBI, in a bid to save rupee, took unconventional measures starting mid-July.
The rupee today breached 64-mark to fall to a record low of 64.11 against the dollar.