Kolkata: Good news is coming for the Hinduja brothers. It is possible that he can now increase his stake in IndusInd Bank, while Uday Kotak of Kotak Mahindra Bank can also take a sigh of relief as he may no longer have to sell his stake due to regulatory imperatives.
In fact, the Internal Working Group of the Reserve Bank of India (IBI) has proposed to increase the limit of promoters’ stake in private banks to 26 per cent. According to the proposal of this group, it has been recommended to keep up to 26 per cent of paid-up capital for promoters of all private banks.
As a result, on Monday, IndusInd Bank shares jumped 5.53 percent to Rs 854.85. In the last one month, this stock has strengthened by 39 per cent and in a week by 10 per cent.
It said that the promoters’ stake can be increased from 15 per cent level in a long time of 15 years. Promoters who have reduced their stake to below 26 per cent will get a chance to increase their stake to 26 per cent.
The group added, “This will increase the balance of ownership diversity and increase promoters ‘accountability. On the other hand, the promoters’ 26 per cent stake will be their maximum shareholding limit.”
The Hinduja Group holds a 14.7 per cent stake in IndusInd Bank, while the chairman of the group Ashok Hinduja said that they too have the right to hold a 26 per cent stake in the bank on the lines of Uday Kotak of Kotak Mahindra Bank, seeking the Reserve Bank. However, Kotak has only 15 per cent franchise.
Financial & Business News – CapitalBoat
CapitalBoat provides the latest stock market, financial and business news. Get stock market quotes, personal financial advice, corporate news, Startup stories and latest updates on Economy & Politics, Personal Finance on your Whats app.
Get Breaking News Notifications Via Whats app.
Join our whats app newsletter using this invite link. Click on the link to open chat and send message ‘START’ to join us.
Please forward this message on to your Friends, Colleagues and Family members who may be interested in this.