Federal Bank rose 1.45% to Rs 83.85 at 10:39 IST on BSE after the Cabinet Committee on Economic Affairs approved raising foreign shareholding limit in the bank to 74% from existing 49%.
Meanwhile, the BSE Sensex was up 63.39 points, or 0.30%, to 21,268.44.
On BSE, so far 2.45 lakh shares were traded in the counter, compared with an average volume of 4.19 lakh shares in the past one quarter.
The stock hit a high of Rs 85.65 and a low of Rs 83.55 so far during the day. The stock hit a 52-week high of Rs 104.75 on 8 February 2013. The stock hit a 52-week low of Rs 44.25 on 4 September 2013.
The stock had outperformed the market over the past one month till 20 January 2014, rising 4.03% compared with the Sensex's 0.59% rise. The scrip had also outperformed the market in past one quarter, rising 15.84% as against Sensex's 1.54% rise.
The mid-cap company has an equity capital of Rs 171.07 crore. Face value per share is Rs 2.
The Cabinet Committee on Economic Affairs on Monday, 20 January 2014, approved the proposal of Federal Bank for increase in foreign investment ceiling in the bank to 74% of the bank's equity, subject to the aggregate foreign institutional investors' (FIIs) shareholding not exceeding 49% of the paid up equity share capital of the bank. The approval would result in foreign investment of approximately Rs 1400 crore in the country, a government statement said.
It may be recalled that the Reserve Bank of India (RBI) had in August last year banned further purchases of shares of Federal Bank by FIIs after aggregate foreign share holding in the private sector bank crossed the overall limit of 49% of the bank's paid-up capital.
Total FII holding in Federal Bank was 42.27% as on 31 December 2013.
Federal Bank's net profit rose 9.18% to Rs 230.13 crore on 9.86% growth in total income to Rs 1895.92 crore in Q3 December 2013 over Q3 December 2012.
Federal Bank is a leading private sector bank in India.
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