RBI Allows Axis Bank To Raise Foreign Shareholding

Mumbai: The Reserve Bank of India has allowed Axis Bank to raise foreign shareholding to up to 62 per cent from the earlier limit of 49 per cent.

"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 (PIS)", the RBI said in a notification.

The RBI said total foreign investment from all sources in the bank shall not exceed 62 per cent 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. 

Shares in Axis Bank, on Tuesday, ended 0.45 per cent higher at Rs 515.60 apiece on the BSE, whose benchmark Sensex index finished down 0.22 per cent.