Shares in Axis Bank surged 8% after new reports that Bain capital was picking a stake in the bank.
However, the Reserve Bank of India has to clear the proposed stake in the bank. The report also said that the stake of Bain Capital may increase to as much as 10 per cent in Axis Bank.
PSU banking stocks rallied last week after the government decided to infuse fresh capital in these stocks. However, Axis Bank along with some private sector banks had failed to see any rally in their price. The bank along with ICICI Bank are some of the larger private sector banks that are struggling with non performing assets.
The fresh infusion through capital would be a wlecome move for Axis Bank, which can now boost its capital adequacy requirements. Check stock quote of Axis Bank here