IndusInd bank to decrease promoter stake to 10%

By | December 26, 2009

Private sector bank, IndusInd Bank has presented its plan to the Reserve Bank, to bring down the promoter stake to the compulsory 10 per cent over the next 2-3 years.

Speaking to reporters, M.D & CEO, Mr. Romesh Sobti said, “The bank has given its roadmap to the RBI on the matter. During this timeframe, the promoter holding will be brought down to the manadatory 10 per cent.” Mr. Sobti added that the holding would automatically come down as and when the lender made equity issuances over the coming 2-3 years. Presently, promoters hold 22.2 per cent stake in IndusInd bank and this against the mandate of the RBI which states that no entity or group can hold over 10 per cent stake in a private sector bank

During the current financial year, the bank expects its loan book to grow by 25-30 per cent, while the consumer finance book alone is expected to grow by 20 per cent. Commenting on the speculation about a CRR hike by the RBI, Mr. Sobti said, “With inflation inching up, the central bank is expected to opt for a ‘twin’ action by hiking its cash reserve ratio (CRR) and policy rates by next month.”

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About Pradeep Yuvaraj

Pradeep Yuvaraj is a Co-Founder and Director at Finerva Financial Solutions Private Limited, a financial education company focused on personal finance education. He has penned over 250 articles relating to Personal Finance and clocked over 500 hours of educating individuals on managing personal finance. He is a serial entrepreneur and has been associated with 7 Start-ups. His entrepreneurial experience spans industries as varied as Education, Gas Engineering, Automobile Design, Software development and more recently a Pure play presentation design company. Prior to turning entrepreneur in 2005, he has worked for 3 of the top ten companies of the world - Shell, ExxonMobil and Total SA. This experience included handling Branch Operations, Channel Sales and Business Development across 5 states over a period of 8 years. He holds an MBA from Symbiosis and an Electronics Engineering Degree from the University of Pune.

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