FIPB ups Axis Bank FPI limit to 74%; to lead to Rs 13k cr inflow

The Foreign Investment Promotion Board (FIPB) has hiked the foreign portfolio investor (FPI) limit in Axis Bank from 62 percent earlier to 74 percent.This is expected to lead to foreign inflows of about Rs 12,900 crore towards investments into the bank.The was among the many decisions taken today by the FPI with respect to foreign investment.Speaking to CNBC-TV18, market expert Hemindra Hazari said Axis Bank can now come up with another issue. In current times of poor asset quality, any such approval is a big positive and banks should use such inflows to recapitalize, he said.Specific to Axis, however, Hazari said the investment amount may not suffice and added that the bank has a huge exposure to the agriculture and rural sectors, which could come under severe stress in the coming quarters.Watch video for more