1 / 9Six state-run lenders, State Bank of India Ltd., Bank of Baroda Ltd., Punjab National Bank Ltd., Canara Bank Ltd., Union Bank of India Ltd., and Indian Bank Ltd., are likely to receive passive MSCI inflows to the tune of $1 billion, in case the proposal to increase the FII limit in these banks is increased to 26% from 20% currently.
2 / 9CNBC-TV18 had reported first on July 20, that the foreign shareholding cap in state-run lenders is likely to be reviewed along with a proposal for further consolidation among these lenders.
3 / 9Nuvama Alternative and Quantitative Research wrote in a note that these lenders could see passive inflows worth over $900 million, in case the proposal to raise the FII shareholding limit in these lenders is approved. Here’s a look at the quantum of inflows these banks may receive:
4 / 9State Bank of India | India’s largest lender, where the current FII shareholding stands at 10%, could receive inflows to the tune of $466 million, according to Nuvama Alternative. The stock is trading at a 52-week high, having gained 8% in the last one month.
5 / 9Bank of Baroda | The second-largest state-run lender, currently has 8% foreign shareholding. Nuvama Alternative anticipates inflows to the tune of $76 million, in case the FII shareholding limit increase proposal is approved. The stock trades close to its 52-week high today, having gained 7% in the last one month.
6 / 9Punjab National Bank | Similar to Bank of Baroda, PNB is also likely to receive passive inflows worth $76 million, according to Nuvama Alternative. The stock is also at a 52-week high having gained 8.5% in the last one month. Foreign shareholding here currently stands at 6%.
7 / 9Canara Bank | Nuvama Alternative is anticipating passive inflows to the tune of $64 million in the lender, where foreign shareholding currently stands at 11%. The stock also trades at a 52-week high, having gained 15% in the last one month.
8 / 9Union Bank | The lender, where foreign shareholding currently stands at 7.7%, is likely to see passive inflows to the tune of $62 million, according to Nuvama Alternative. The stock needs to gain another 12% to scale its 52-week high, but has risen 6.2% in the last one month.
9 / 9Indian Bank | The lender could be a fresh inclusion in the MSCI indices in case the proposals to hike FII shareholding limits are approved. In case that happens, Indian Bank could receive passive flows to the tune of $177 million, according to Nuvama Alternative. The stock has risen 8% in the last one month, and now trades at a 52-week high.
