India-based commercial lender IndusInd Bank’s promoters have confirmed their plans to raise their stakes in the bank.
In a regulatory filing, the promoters disclosed that they intend to buy additional shares of the bank from the open market.
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In the filing, the bank stated: “We forward herewith a copy of communication received from IndusInd International Holdings and IndusInd, promoters of the bank, regarding their proposal to acquire shares of our Bank from the secondary market.”
The promoters currently own 14.68% of the paid-up share capital of IndusInd Bank while the promoter shareholding is capped at 15% by the Reserve Bank of India (RBI), the country’s central bank.
The public lender in a separate regulatory filing, stated that the promoters, Hinduja Group, applied to the RBI for increasing this limit to 26% back in March.
However, RBI did not approve its proposal yet. The move comes after RBI allowed Kotak Mahindra Bank promoters to own up to 26% stake in the bank.
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By GlobalDataThe RBI guidelines state that private lenders, from commencement of operations, are required to slash their holdings to 40% within three years, 20% within 10 years and 15% within 15 years.
