Companies

Hindujas hail RBI move; may up stake in IndusInd from 15% to 26%

Our Bureau | | Updated on: Nov 27, 2021
image caption

The promoters of IndusInd Bank – the Hindujas – are likely to increase their stake in the bank as the Reserve Bank of India has decided to up the cap on promoters stake in a private sector bank to 26 per cent from 15 per cent.

Welcoming RBI’s decision, Ashok Hinduja, Chairman of IndusInd International Holdings Ltd (IIHL), Mauritius, the promoter entity of IndusInd Bank, in a statement, said: “We eagerly await the operating guidelines as it gives the promoters an opportunity to inject capital to increase stake up to 26 per cent.”

RBI’s proposal

The RBI on November 26 had accepted one of the key recommendations of the Internal Working Group on ownership and corporate structure of private sector banks, whereby the cap on promoters’ stake in the long run of 15 years may be raised from the current levels of 15 per cent to 26 per cent of the paid-up voting equity share capital.

As of September 30, 2021, promoters hold 16.54 per cent stake in IndusInd Bank. Of this, IIHL owns 12.6 per cent and IndusInd Ltd have 3.94 per cent.

The bank’s promoters have previously said they would like to increase their stake to 26 per cent.

Hinduja observed that the increased promoter holding will lead to enhanced financial strength of the bank and its clients will be protected.

“We believe this measure of increased promoter holding will be of benefit to all the stakeholders: the regulator, the banking institution and its clients, particularly at this time when the Indian economy is poised for exponential growth,” he said.

Published on November 27, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

COMMENTS
This article is closed for comments.
Please Email the Editor

You May Also Like

Recommended for you