The Hinduja Group has sought the Reserve Bank of India's (RBI) permission to raise their stake in IndusInd Bank to 26 percent from the existing 15 percent, The Economic Times reported.
“We have just recently written to the RBI to increase shareholding from 15 percent to 26 percent. When I saw that Kotak Mahindra Bank has got a dispensation, we also thought of writing to them. Why not give us that dispensation as well? Let’s see how they respond,” ” Ashok Hinduja, Chairman of the Hinduja Group of Companies (India), told the publication.
Kotak Mahindra Bank's promoters recently received the RBI's green signal to cut their holding to 26 percent, capping their voting rights at 20 percent.
The central bank's norms stipulate that a private lender's promoter needs to slash their holding to 40 percent within three years of receiving the banking license, to 20 percent within 10 years and to 15 percent within 15 years.
This norm was relaxed for Kotak Mahindra Bank and Bandhan Bank, which received their banking license in 2003 and 2015. IndusInd Bank received its licence in 1994.
“My message to the regulator is that, when the original licences were given, promoters could hold more, about 40-49 percent. The stronger the promoter, the more committed he will be — more capital will be infused by the promoter in the bank,” Hinduja said.
He added that when the stock market crashes, promoters are likely to sell their stake and even exits banks since they are financial investors.
The IndusInd Bank stock has fallen almost 61 percent in the past one-year.
“This is the right opportunity for us to support the bank, though it does not need capital for two years,” Hinduja said. “It is always better to come in when the prices are down,” he added.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
