Bank of Baroda shares up 3% as RBI lifts curb on FIIs

Shares of Bank of Baroda rose by nearly 3 per cent after the Reserve Bank lifted a ban imposed on foreign investors to buy shares in the company.

Shares of the bank went up by 2.66 per cent to close at Rs. 853.95 on the BSE. In intra-day session, it jumped 3.8 per cent to Rs. 863.50.

At the NSE, Bank of Baroda’s stock was up 2.95 per cent to Rs. 856.55.

The Reserve Bank has lifted ban imposed on foreign investors to buy shares in Bank of Baroda as the foreign shareholding under portfolio investment scheme (PIS) in the bank has gone below prescribed limit.

RBI had said on Tuesday that aggregate share holdings by Foreign Institutional Investors/Registered Foreign Portfolios Investors/Non-Resident Indian/Persons of Indian origin (PIOs) under PIS in Bank of Baroda have gone below the prescribed threshold caution limit.

FIIs held 16.95 per cent shares in Bank of Baroda as of quarter ended June 2014, according to BSE data.

“Hence, the restrictions placed on the purchase of shares of the above company are withdrawn with immediate effect. Equity shares of Bank of Baroda can now be purchased through primary market and stock exchanges,” RBI had said in a release on Tuesday.