Shares in Axis Bank surged after the Reserve Bank of India (RBI) hiked FII buying limit in the bank to 62 per cent.

The earlier limit for Foreign Institutional Investors (FIIs) in the bank was 49 per cent.

Shares of Axis Bank were last trading 2 per cent higher at Rs 525. The stock of the bank has seen a dramatic recovery after hitting 52-week lows in the month of Feb 2016.

Axis Bank like most other banks has been hit by rising non performing assets. Unlike other private sector banking peers like IndusInd Bank and HDFC Bank, the bank has seen asset quality deterioration in the last few quarters.

This has led to the stock falling, but not has recovered as analysts believe that the worst for the banking sector could now be behind.

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