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AXIS Bank gains after CCEA nod for hike in foreign investment ceiling

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Capital Market
Last Updated : Dec 26 2013 | 11:55 PM IST

AXIS Bank rose 1.2% to Rs 1298 at 14:37 IST on BSE after the Cabinet Committee on Economic Affairs approved the proposal of the bank for increase in foreign investment ceiling in the bank to 62% from 49%.

Meanwhile, the S&P BSE Sensex was up 18.74 points or 0.09% at 21,051.45.

On BSE, so far 2.17 lakh shares were traded in the counter as against average daily volume of 3.51 lakh shares in the past one quarter.

The stock hit a high of Rs 1,318.45 and a low of Rs 1,280.05 so far during the day. The stock had hit a 52-week high of Rs 1,549 on 20 May 2013. The stock had hit a 52-week low of Rs 764 on 4 September 2013.

The stock had outperformed the market over the past one month till 24 December 2013, surging 18.31% compared with the Sensex's 4.03% rise. The scrip had also outperformed the market in past one quarter, jumping 24.97% as against Sensex's 5.58% rise.

The large-cap bank has equity capital of Rs 469.24 crore. Face value per share is Rs 10.

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The government today, 26 December 2013, said that the Cabinet Committee on Economic Affairs (CCEA) has approved the proposal of AXIS Bank for increase in foreign investment ceiling in the bank to 62% from 49%, subject to the aggregate foreign institutional investors holding not exceeding 49% of the paid up equity share capital of the bank. The approval would result in foreign investment of Rs 7250 crore (approximately) in the country, a government statement said.

The Reserve Bank of India had in November 2013 restricted further purchases of equity shares of AXIS Bank by foreigners after total foreign holding in the bank through Foreign Institutional Investors (FIIs)/Non-Resident Indians (NRIs)/Persons of Indian Origin (PIOs)/Foreign Direct Investment (FDI)/American Depository Receipt (ADR)/Global Depository Receipts (GDRs) reached the trigger limit. RBI had allowed further purchases of AXIS Bank shares by foreigners only after obtaining the central bank's prior approval. FII holding in AXIS Bank stood at 43.37% as on 30 September 2013.

AXIS Bank's net profit rose 21.3% to Rs 1362.31 crore on 13.2% growth in total income to Rs 9375.08 crore in Q2 September 2013 over Q2 September 2012.

AXIS Bank is the third largest private sector bank in India. With its 2,021 domestic branches (including extension counters) and 11,488 ATMs across the country, as on 30 June 2013, the network of AXIS Bank spreads across 1,300 cities and towns. The bank also has overseas offices in UK, Singapore, Hong Kong, Shanghai, Colombo, Dubai and Abu Dhabi.

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First Published: Dec 26 2013 | 2:34 PM IST

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