Financial Daily from THE HINDU group of publications
Tuesday, Feb 28, 2006
Financial Daily from THE HINDU group of publications Tuesday, Feb 28, 2006 |
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Money & Banking
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Private Banks Markets - Foreign Institutional Investors Federal Bank seeks RBI nod for 49 pc FII limit Postal ballot shows most investors are for hike Our Bureau
Kochi , Feb. 27 Having obtained the shareholders' consent, Federal Bank has sought the RBI permission to raise the FII investment limit from the current 24 per cent to 49 per cent. "Over 99 per cent of the investors who sent in their postal ballot were in favour of raising the FII investment limit," said Mr K.S. Harshan, Executive Director. The FII holding had earlier crossed the upper limit of 24 per cent of the bank's total paid-up capital of Rs 85.6 crore. Responding to the heightened FII interest, the bank decided to increase their stake. The initiative is seen as a move to make the scrip more liquid and visible in the national and international bourses. The bank had recently deployed 18 million GDRs in the European markets and mobilised $80 million. A resolution approved by the shareholders also enables NRIs to increase their holding in the bank to 24 per cent. At present, NRI holding is just around one to two per cent. Between the FIIs and NRIs, the total overseas holding in the bank is slated to grow to 73 per cent. The apex bank's approval is expected in couple of days, sources in the bank said. The shareholders also approved the proposal to increase the strength of the board from 9 to 12. The bank proposed to include more professionals on the Board. On the BSE, the Federal Bank scrip closed at Rs 174.10.
More Stories on : Private Banks | Foreign Institutional Investors
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