Federal Bank gains as board approves stock split

Moneycontrol Bureau

Shares of Federal Bank are in demand after the private sector lender apporoved the split of its equity shares.

The board of directors on Thursday passed a resolution regarding splitting up of shares of face value of Rs 10 to face value of Rs 2 each.

The bank said the investment and capital raising committee of the board will meet on September 14, 2013, to consider the record date for stock split.

Meanwhile, the bank in previous month had filed an application with FIPB to raise foreign holding limit in the bank to 65 percent after it crossed its current foreign holding limit of 49 percent.

The move has been necessitated because of the Reserve Bank's August 20 press release prohibiting foreign institutional investors, non resident Indians and persons of Indian origin from purchasing shares in Federal Bank as its foreign holding has crossed 49 percent.

At 12:44 hours IST, the stock gained 1.77 percent to Rs 302.25 on the Bombay Stock Exchange.