Date:08/07/2006 URL: http://www.thehindubusinessline.com/2006/07/08/stories/2006070803591500.htm

Back South Indian Bank board okays hike in FII limit

Our Bureau

Kochi , July 7

The board of South Indian Bank has approved a proposal to increase the FIIs stake in the bank's equity to 49 per cent, up from the 24 per cent that they are permitted to hold at present. The FIIs current holding in the bank is slightly over 20 per cent.

The board decision is subject to the RBI consent and apex bank's concurrence is awaited shortly, according to the bank's Chairman and CEO, Dr V.A. Joseph. It is following the renewed interest of FIIs in the bank that the board decided to increase their holding limit from 24 to 49 per cent.

The FII shaving a sizeable holding in the bank are India Capital Fund, Goldman Sachs, Credit Suisse, Citi Group Global and ABN Amro. The major domestic institutions, which have a stake in the Thrissur-based bank are Federal Bank, Reliance Capital and mutual funds such SBI Mutual Fund, Principal Mutual Fund etc.

The bank's share prices moved up by Rs 2.30, up from Rs 53.70 to Rs 56, at the Bombay Stock Exchange on Friday.