Mumbai: The Reserve Bank of India (RBI) has allowed foreign institutional investors ro raise equity limit in Bajaj Auto Finance under the portfolio investment scheme to 30 per cent.

FIIs can now make purchases of equity shares and convertible debentures of Bajaj Auto Finance through primary markets and stock exchanges in India, the RBI said in a statement.

Purchases can be made up to 30 per cent of the paid-up capital of Bajaj Auto Finance. The RBI note follows the company's passing a resolution to this effect at its board meeting and a special resolution passed by its shareholders.

Bajaj Auto Finance has reported a profit of Rs 16.86 crore for the quarter ended December 2006, against a loss of Rs 11.81 crore in the same quarter of the previous year.

Sales for the quarter were 83.97 per cent higher at Rs 114.78 crore compared with the year-ago period while total income for the quarter rose 77.6 per cent to Rs 126.76 crore.