RBI lets Axis Bank raise foreign shareholding to up to 62%

Mumbai: Reserve Bank has allowed Axis Bank to raise foreign share holding to up to 62 percent, from the earlier limit of 49 percent.

"Foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) can now invest from the existing 49 percent up to 62 percent of the paid-up capital of Axis Bank under the Portfolio Investment Scheme (PIS)", RBI said in a notification.

RBI said total foreign investment from all sources in the bank shall not exceed 62 percent 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 enhancing the limit for purchase of its shares and convertible debentures by FIIs/RFPIs.

One of the leading private lenders, Axis Bank started operations in 1994 and has been promoted by financial institutions such as UTI, LIC, GIC and its subsidiaries.

Axis Bank stock closed 0.45 percent up at Rs 515.60 on BSE.