City Union Bank stock up over 6 per cent as RBI okays hiking FII stake

MUMBAI: Shares of City Union Bank on Tuesday surged over 6 per cent after the RBI removed the company from its ban list allowing it to raise the FII limit up to 35 per cent of its paid up capital.

The bank's stock ended 6.20 per cent higher at Rs 61.65 on the BSE. In intra-day session, the scrip gained 6.8 per cent to Rs 62 -- its 52-week high.

On the NSE, shares of City Union Bank moved up by 6.37 per cent to settle at Rs 61.80.

The RBI on Monday said that it has removed City Union Bank from its ban list allowing it to raise the FII limit up to 35 per cent of its paid up capital as the foreign shareholding limit had gone below threshold level.

"It is also advised that for FII or Registered Foreign Portfolio Investor (RFPI) or Qualified Foreign Investors (QFI) and NRI under PIS, individual ceiling shall be 5 per cent respectively and aggregate limit for all RFPI/FII/QFI shall be 35 per cent.

"... City Union Bank will have to monitor individual limits of FII/FPI/QFI & NRI and also ensure that at no time its total foreign investment (direct as well as indirect) exceeds 49 per cent, beyond which, it should seek prior FIPB approval," RBI added.