Federal Bank is trading higher by 3% to Rs 93.75, extending its previous day’s 6% rally, after the Reserve Bank of India (RBI) said foreign institutional investors (FIIs) would be allowed to own up to 74% in the bank.
The bank has been removed from the ban list and the restrictions placed on the purchase of shares have been withdrawn with immediate effect, the RBI had said on Friday.
“Equity shares of the bank can now be purchased through primary market and stock exchanges,” RBI said in a notification.
The restrictions were removed as government approved increasing foreign investment in Federal Bank from 49% to 74% for it’s paid up equity share capital.
The stock opened at Rs 92.95 and hit a high of Rs 95.80 on the BSE. The counter has seen huge trading volumes with a combined 2.26 million shares changing hands in early morning deals on the BSE and NSE.
The bank has been removed from the ban list and the restrictions placed on the purchase of shares have been withdrawn with immediate effect, the RBI had said on Friday.
“Equity shares of the bank can now be purchased through primary market and stock exchanges,” RBI said in a notification.
The restrictions were removed as government approved increasing foreign investment in Federal Bank from 49% to 74% for it’s paid up equity share capital.
The stock opened at Rs 92.95 and hit a high of Rs 95.80 on the BSE. The counter has seen huge trading volumes with a combined 2.26 million shares changing hands in early morning deals on the BSE and NSE.