The RBI on Monday gave the go ahead for FIIs and NRIs to purchase up to 49 per cent and 24 per cent respectively of Kerala-based Dhanalakshmi Bank’s paid-up capital through primary and secondary markets and stock exchanges. The RBI stated in a press release that aggregate foreign investment (by FIIs and NRIs) in Dhanalakshmi bank should not exceed the composite sectoral cap of 74 per cent.
The central bank’s permission was preceded by Dhanalakshmi bank’s board of directors as well as annual general meeting passing resolutions to this effect.
As per the new limits, the FII investment limit in the bank has been enhanced from 24 per cent and the NRI investment limit has been raised from 10 per cent. In the second quarter of this financial year, Dhanalakshmi bank posted a lower net profit of Rs 6.26 crore as compared with Rs 8.78 crore in the corresponding quarter last year.