Veteran banker and former managing director and chief executive officer of IndusInd Bank Romesh Sobti is likely to join the board of Aditya Birla (AB) Capital as a nominee director of Advent Capital, reports Business Standard.
Earlier in September 2019, Advent invested Rs 1,000 crore in AB Capital for Rs 100 a share. Currently, Advent has a stake of 4.23 percent in AB Capital which has secured a board seat in the non-bank.
Sobti, who took the role of operating partner at Advent after retiring from IndusInd Bank, is likely to be appointed as a non-executive board member at AB Capital. According to the report, Sobti is waiting for the Reserve Bank of India's approval.
The development comes a fortnight after the RBI’s internal working committee suggested that large non-banking financial companies can convert into banks if they fulfill certain criteria.
AB Capital is also already revising its operations and business strategies following the proposal which is paving way for AB Capital to relook at its banking aspiration.
Experts believe that Sobti's entry into the AB Capital board may reorient the lender's business. Also, some even opine that the move may make AB Capital more acceptable from a bank licence perspective.
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