The Reserve Bank of India (RBI) has allowed Indian private sector lender Axis Bank to increase foreign shareholding to 62%.
"Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest from existing 49 per cent up to 62 per cent of the paid up capital of M/s Axis Bank Ltd. under the Portfolio Investment Scheme (PIS)," the regulator said.
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The regulator said that total foreign investment from all sources in the bank should not be more than 62% of the paid-up capital.
The move comes following resolutions passed by the company’s board of directors and through a special resolution by the shareholders, agreeing to raise the limit for purchase of its shares and convertible debentures by FIIs/RFPIs.
The move comes barely a month after the regulator reviewed the extant guidelines on ownership and shareholder structures in the country’s private sector lenders.
Under the new guidelines, the shareholding pattern has been divided into two broad categories of individuals (natural persons) and legal entities/institutions. The regulator has however, retained the cap on foreign shareholding at 74%.
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