IndusInd Bank slips over 2% as FII investments reach trigger limit

NEW DELHI: IndusInd Bank Ltd slipped as much as 2.5 per cent in intraday trade on Friday as foreign investors would now have to get prior permission from the Reserve Bank for buying shares in IndusInd Bank.

The Reserve Bank of India (RBI) on Thursday said that foreign shareholding through foreign institutional investors, NRIs, persons of Indian origin or via foreign direct investment in IndusInd Bank has reached the trigger limit.

"Hence, further purchases of equity shares of Induslnd Bank would be allowed only after obtaining prior approval of the Reserve Bank of India," RBI said in a release.

Under the portfolio investment scheme, FIIs are allowed to buy up to 49 per cent of the paid-up capital in the bank through primary or secondary markets subject to aggregate foreign investment limit not exceeding sectoral cap of 74 per cent.

As per data available on BSE, FIIs held 41.13 per cent shares in IndusInd Bank as of quarter ended December 2013, PTI said in a report.