InvestorQ : After the Kotak and Bandhan Bank case, is the RBI planning to allow bank promoters to hold a higher stake?
Sam Eswaran made post

After the Kotak and Bandhan Bank case, is the RBI planning to allow bank promoters to hold a higher stake?

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Moii Chavate answered.
3 months ago
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In the last few years there has been a lot of controversy over banks reducing their stake of the promoters to prescribed levels. This happened in the case of Uday Kotak with Kotak Bank and also the promoter of Bandhan Bank. The RBI/Kotak case even went the legal way before a middle path was invented. Now there may be respite.

This interesting proposal is apparently driven by recent cases like Bandhan Bank and Kotak Bank. Even in Bandhan Bank, the promoters recently cut down their stake. The RBI Working Group proposes to allow the promoters of private banks to have minimum holding of 26% in the bank instead of the present limit of 15%.

In the case of Kotak Bank and Bandhan Bank, the promoters had to cut down their stake drastically. The new proposal may mean that in many of the private banks, the promoters will not have to cut any further stake from these levels and could also hike stakes. But above, it is going to be a big boost to the stock price of these banks.

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