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UTI Bank stake hike — HSBC to await clarity on FDI policy, voting rights

Our Bureau

Mr Niall Booker.

New Delhi , Nov. 4

HSBC has said that it would await the final policy on foreign direct investment (FDI) and voting rights cap in private banks, before deciding on whether to hike its 14.6 per cent stake in UTI Bank.

"Once new regulations and RBI guidelines come up, we will decide on it (hiking stake in UTI Bank)," the Chief Executive, HSBC India, Mr Niall Booker said.

He said that RBI's draft norms that allow foreign banks stake up to 10 per cent and the earlier policy on FDI allowing a 74 per cent holding (that was notified by the previous Government) did not help in providing clarity on the crucial issues.

"The big jigsaw is how to go there (74 per cent holding)," Mr Booker said on the sidelines of `Euromoney conference' here.

He said that the RBI draft norms did not help foreign banks to have a meaningful holding in Indian private banks. "It is unpalatable to make a choice (of buying a private bank) with 5.0 per cent hike in holding."

More Stories on : Mergers & Acquisitions | Foreign Direct Investment | Foreign Banks

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