RBI considers raising promoter shareholding limit in private banks: Report
Promoters' voting rights might be capped at 15-20 percent.
April 30, 2020 / 12:59 PM IST
The Reserve Bank of India (RBI) is considering raising the 15 percent limit on promoter shareholdings in private sector lenders.
A report by The Economic Times said the raised limit is part of the new norms that are being formed.
Promoters' voting rights might be capped at 15-20 percent, the report said.
"The new rules were in the works but delayed due to the COVID-induced lockdown, and might be issued in a few weeks," a source told the publication.
Moneycontrol could not independently verify the story.
The RBI has not yet responded to a request for comment by The Economic Times.
According to the RBI's rules, promoters need to shed their holding to 40 percent within three years of getting a banking license, and then to 20 percent in 10 years and to 15 percent within 15 years.
The central bank had in January eased the norms for Kotak Mahindra Bank, permitting promoters to reduce their stake to 26 percent, and capped voting rights at 15 percent.
Bandhan Bank, that received its banking license in 2015, was in September 2018 barred from opening new branches because promoters had not complied with the norms.
The RBI had in February 2020 lifted some of the restrictions, allowing Bandhan Bank to open new branches.
Bandhan Bank's promoters currently own 61 percent of the company.