The Hindujas, who had applied to RBI earlier in the day to increase their holding in IndusInd Bank, welcomed the RBI move to allow promoter holdings of up to 26 in private sector lenders. The RBI had asked IIHL Mauritius, the promoter of IndusInd Bank, to increase its holding to 26 from the previous cap of 15 seeking parity after promoters of rival Kotak Mahindra Bank were given the permission to hold their holding at 26 after dragging the RBI to courts.
The increase in promoter holding will be beneficial for all stakeholders, including the banking institution, the regulator, and its clients, especially at this time when the Indian economy is poised for exponential growth, Ashok Hinduja, chairman of IIHL, said.
The RBI released revised guidelines on private sector banks, allowing for 26 promoter ownership, but did not go ahead with an internal working group's recommendation to allow corporates to promote banks after protests from various quarters, including former governors.
He said that the IIHL now awaits operational guidelines as it gives the promoters the chance to increase stake up to 26. Increased promoter holding will lead to enhanced financial strength of the bank and its clients.