IndusInd Bank up over 2% as RBI allows FIIs to buy shares

Shares of IndusInd Bank on Monday surged over 2 percent in morning trade on the bourses after the Reserve Bank on Friday removed the lender from its caution list. RBI in a release on September 4 said it has removed IndusInd Bank from its caution list, allowing foreign investors to buy further shares in the lender. “The restrictions placed on the purchase of shares of the above bank are withdrawn with immediate effect,” RBI said adding that the shares of IndusInd Bank can now be purchased through the primary market and stock exchanges. Following which, shares of the company opened on a bullish note, in an otherwise volatile market, and surged 2.37 percent to an early high of Rs 860. Similar movement was seen on the National Stock Exchange as well, where the stock opened at Rs 850, then jumped 2.23 percent to an early high of Rs 859.60. The surge in the counter assumes significance as the broader market was trading in the negative territory. At 1130 hours the 30-share benchmark index was trading at 25,152.84, down 49.06 points. Under the Portfolio Investment Scheme (PIS), RBI keeps a tab on foreign shareholding of Indian firms in accordance with the stipulated cap.