Money & Banking

Govt of UT of Ladakh gets RBI nod to acquire 8.23% stake in J&K Bank

Our Bureau Mumbai | Updated on July 27, 2021

This is subject to compliance with the relevant provisions of Banking Regulation Act, 1949

The Reserve Bank of India has accorded its approval to the Government of the Union Territory (UT) of Ladakh to acquire 8.23 per cent of the paid-up equity capital of Jammu and Kashmir Bank Ltd as on the date of enforcement of Jammu and Kashmir Reorganisation Act, 2019 ( October 31, 2019).

This move follows the Government of Jammu and Kashmir’s October 30, 2020, Order regarding the transfer of 8.23 per cent shareholding (about 4.58 crore equity shares) in Jammu and Kashmir Bank as of October 31, 2019, to the UT of Ladakh, the bank said in a statement.

This is subject to compliance with the relevant provisions of Banking Regulation Act, 1949, RBI Master Direction on Prior approval for the acquisition of shares or voting rights in private sector banks, Master Direction on Ownership in Private Sector Banks, among others, it added.

As of June end 2021, the Government of Jammu and Kashmir was the majority shareholder, owning 68.18 per cent stake in the bank.

The bank, which declared its financial results on July 14, reported a net profit of ₹317 crore in the fourth quarter ended March 31, 2021, against a net loss of ₹294 crore in the year-ago quarter and a net profit of ₹66 crore in the December 2020 quarter.

Published on July 27, 2021

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