South Indian Bank shares were trading in red in afternoon trade on Monday after the Reserve Bank of India on Friday restricted overseas investors to make further investment in the private sector bank as the prescribed foreign shareholding limit has reached the trigger limit. At 2.06 pm, shares of the bank were trading 0.63 per cent down at Rs 23.50. The scrip opened the day at Rs 23.65 and has touched a high and low of Rs 23.85 and Rs 23.40, respectively, in trade so far. Later, share price of the company ended 0.42 per cent down at Rs 23.55.
The Reserve Bank of India (RBI) on Friday in a notification said that the foreign shareholding by American Depository Receipts (ADR)/Global Depository Receipts (GDR)/Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs)/Non Resident Indian (NRIs)/Foreign Direct Investment (FDIs)/Persons of Indian Origin (PIOs) in South Indian Bank has reached the trigger limit. Hence further purchases of equity shares of the bank would be allowed only after obtaining prior approval of the Reserve Bank of India.
For the quarter ended June 2016, the bank reported a net profit of Rs 95.06 crore, up 45.60 per cent, against Rs 65.29 crore in the same quarter last year. Total income of South Indian Bank also jumped by 9.47 per cent year-on-year to Rs 1620.67 crore for the quarter under review against Rs 1480.51 crore in the same quarter last year.