Axis Bank shares gained nearly 3 per cent on Wednesday as the Reserve Bank of India allowed the private lender to raise foreign shareholding to 62 per cent from 49 per cent currently.
"Foreign institutional investors (FIIs)/registered foreign portfolios investors (RFPIs) can now invest from the existing 49 per cent up to 62 per cent of the paid-up capital of Axis Bank under the portfolio investment scheme," the RBI said in a notification.
Higher foreign shareholding limit in Axis Bank will help attract inflows to the stock, traders said. Earlier Axis Bank had passed a special resolution to increase the foreign shareholding limit, which was approved by its shareholders and board of directors.
Axis Bank shares closed 0.63 per cent lower at Rs 511.95 compared to 1.12 per cent fall in the industry benchmark Nifty Bank.