BANKS
RBI panel proposes upping promoter cap in private banks to 26%
RBI's internal working group has suggested hiking the cap on promoter holding to 26% from the current 15% for all private banks.
RBI's internal working group has suggested hiking the cap on promoter holding to 26% from the current 15% for all private banks.
After allowing Kotak Mahindra Bank to retain its promoter holding at 26%, the Reserve Bank of India's internal working group has now suggested hiking the cap on promoter holding to 26% from the current 15% for all private banks.
Last year, Uday Kotak-promoted Kotak Mahindra Bank had a run-in with the regulator on the issue of bringing the stake below 26%. The bank took the regulator to court, becoming the first instance of the kind. The issue was settled out of court, with the regulator succumbing to the demand.
The Hindujas have voiced their interest to hike their stake in IndusInd Bank from 15% to 26%.
Chandra Sekhar Ghosh of Bandhan Bank has over 60% stake, which will now have to come down to 26%.
RBI had constituted the internal working group (IWG) on 12 June to review extant ownership guidelines and corporate structure for Indian private sector banks. The apex bank released the IWG's report on Friday.
