Foreign investment limit in City Union Bank raised to 40%

MUMBAI: The RBI today notified that foreign investment limit in City Union Bank has been raised to 40 per cent, following which the restriction placed on purchase of shares of the firm by overseas investors has been lifted.

"...the foreign shareholding by FIIs/RFPIs in City Union Bank has gone below the revised threshold limit stipulated under the extant FDI Policy.

"Hence, the restrictions placed on the purchase of shares of the above company on July 18, 2014 are withdrawn with immediate effect," RBI said a release.

Earlier the limit for such investment was 35 per cent. The restiction was lifted after the company board passed resolution for purchase of equity shares by FIIs/RFPIs/QFIs up to 40 per cent (from 35 per cent earlier) of their paid-up capital.

"Equity shares of City Union Bank can now be purchased through primary market and stock exchanges," RBI said.