Axis Bank sitting pretty in green

Axis Bank is sitting pretty in the green today morning. The stock which closed at Rs.1097.70, opened higher today at Rs.1124, with an intra day high at Rs.1131.

Axis Bank seeks to increase its foreign investment limit from the present 49% to 62% and this could mean an inflow of over Rs.6000 crore. The Foreign Investment Promotion Board has cleared this proposal but it now awaits the Cabinet Committee on Economic Affairs as it envisages investment of over Rs 1,200 crore.

If the Bank does this get, it will thenceforth become a foreign bank and it will be ruled by FDI norms and every investment it makes in its seven subsidiaries will be require FDI policy nod. The market is merely enthused by the fact it becomes a ‘foreign’ bank even before RBI announces its guidelines for foreign banks.