The Hindujas, who had earlier moved the RBI seeking to increase their holding in IndusInd Bank, on Saturday welcomed the regulator’s decision to allow promoter holding of up to 26% in private sector lenders.
IIHL Mauritius, the Hindujas’ entity and the promoter of IndusInd Bank, had applied to the RBI to increase its holding to 26% from the earlier 15%, after promoters of rival Kotak Mahindra Bank were given thenod to keep their holding at 26% after they dragged the regulator to courts.
“We believe this measure of increased promoter holding will be of benefit to all stakeholders: the regulator, the banking institution and its clients, particularly at this time when Indian economy is poised for exponential growth,” said Ashok Hinduja, the chairman of IIHL.
The RBI on Friday came out with revised guidelines on private sector banks, allowing for 26% promoter ownership, but did not go ahead with an internal working group’s recommendation to allow corporates to promote banks following protests from various quarters, including former governors.
Mr. Hinduja said IIHL now awaits operational guidelines as it gives the promoters an opportunity to inject capital to increase stake up to 26%.
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