Shares of mid-cap private sector banks are in focus, rallied up to 5% in morning deals on BSE, after the Reserve Bank of India (RBI) has released the policy framework for foreign banks in India.
In its policy framework, RBI says it may allow foreign banks to buy private banks after it makes a review of functioning of foreign banks and foreign investment in Indian banks, but it should not exceed overall foreign direct investment (FDI) limit of 74% in any private bank.
Lakshmi Vilas Bank, Karnataka Bank, Dhanlaxmi Bank, Development Credit Bank, South Indian Bank and City Union Bank are trading higher in the range of 2-5% on the Bombay Stock Exchange (BSE). The benchmark index S&P BSE Sensex was up 0.05% at 1035 hours.
The RBI permitted wholly-owned subsidiary (WOS) of foreign banks to acquire domestic private sector banks as well as set up branches anywhere in the country. It also allowed foreign bank subsidiary to list on local stock exchanges.
Among the individual stocks, Lakshmi Vilas Bank has surged 5% to Rs 78.35, followed by Karnataka Bank (up 4.4% at Rs 106), Development Credit Bank (up 3.6% at Rs 55) and South Indian Bank (up 3.5% at Rs 22.40) on BSE.
In its policy framework, RBI says it may allow foreign banks to buy private banks after it makes a review of functioning of foreign banks and foreign investment in Indian banks, but it should not exceed overall foreign direct investment (FDI) limit of 74% in any private bank.
Lakshmi Vilas Bank, Karnataka Bank, Dhanlaxmi Bank, Development Credit Bank, South Indian Bank and City Union Bank are trading higher in the range of 2-5% on the Bombay Stock Exchange (BSE). The benchmark index S&P BSE Sensex was up 0.05% at 1035 hours.
The RBI permitted wholly-owned subsidiary (WOS) of foreign banks to acquire domestic private sector banks as well as set up branches anywhere in the country. It also allowed foreign bank subsidiary to list on local stock exchanges.
Among the individual stocks, Lakshmi Vilas Bank has surged 5% to Rs 78.35, followed by Karnataka Bank (up 4.4% at Rs 106), Development Credit Bank (up 3.6% at Rs 55) and South Indian Bank (up 3.5% at Rs 22.40) on BSE.