Financial Daily from THE HINDU group of publications
Saturday, Dec 13, 2003
Financial Daily from THE HINDU group of publications Saturday, Dec 13, 2003 |
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Money & Banking
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Private Banks KMB promoters to wait & watch on stake dilution Our Bureau
Chennai , Dec. 12 KOTAK Mahindra Bank's promoters, the Kotak Mahindra group, want to wait for the evolution of the policy regarding ownership of banks to take a decision on diluting their stake in the bank. Currently, the promoter group holds close to 62 per cent in the bank's equity. As per the current policy this needs to be brought down to 49 per cent. According to Mr Uday Kotak, Executive Vice-Chairman and Managing Director of the bank, the promoter group can do the stake dilution any time after one year.But for the present, they want to wait and watch how the regulation regarding bank ownership changes. Many changes are in the offing. For one, the limit on foreign ownership could be raised from 49 per cent to 74 per cent. If foreign shareholders can own 74 per cent, maybe then, even the domestic promoters could be allowed a stake higher than 49 per cent. Today, foreign shareholders have only 10 per cent voting rights, regardless of what stake they hold — this also could change. "Let some clarity come on the unfolding changes, then we will look at our stake dilution," Mr Kotak said.
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