Induslnd Bank shares increases by 5% on RBI panel proposals on Bank ownership
In Monday’s trade, Shares of Induslnd Bank surged 5 percent on hopes that promoters could increase their stake in the bank if suggestions by the RBI’s special committee reports gets implemented.
The Internal Working Group has recommended a staggering increase in primary ownership from 15 percent to 26 percent after 15 years. Due to the changes in the ownership, the stocks rose 5.18 percent and got a high of Rs 852.05 on BSE.
The promoters of Induslnd Bank, Induslnd International Holdings, are owned by the four Hinduja brothers. In March, they requested RBI to allow them to increase their stake in the bank.
The demand came after the apex bank had allowed Kotak Mahindra Bank promoters Uday Kotak to hold 26 percent in the bank.
The bank spoke in favor of the changes in the banking regulation act. The legislative changes allow industrial houses to act as bank promoters.
Hinduja said that shareholder equity is the first thing to defend in a robust banking system.