Latest Expert Exchange Queries

GST Demo Service software link: https://ims.go2customer.com
Username: demouser Password: demopass
Get your inventory and invoicing software GST Ready from Binarysoft info@binarysoft.com
sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
 
 
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
 
 
 
 
Popular Search: empanelment :: TAX RATES - GOODS TAXABLE @ 4% :: list of goods taxed at 4% :: Central Excise rule to resale the machines to a new company :: due date for vat payment :: form 3cd :: VAT Audit :: VAT RATES :: ACCOUNTING STANDARD :: articles on VAT and GST in India :: ACCOUNTING STANDARDS :: ICAI offer Get Windows 7,Office 2010 in Rs.799 Taxes :: cpt :: TDS :: ARTICLES ON INPUT TAX CREDIT IN VAT
 
 
« General »
 Confusion over GST persists: Wholesale grain market affected, sales fall by 40 percent in Pune
 Slow tax growth reflects companies' GST troubles
 What is PAN card? Why is it important?
 Govt to cut down executive discretion on tax laws
 Businesses can start filing July returns on GSTN from August 5
 Are you earning abroad? Know the tax rules
 Attention last minute tax filers! Know about key changes made by govt this year
 Accounting relief for IndAS companies
 How you can reduce your tax to zero if you have income within Rs 10 lakh
 NRIs’ overseas bank info needed only for tax refund
 Non-performance: I-T dept transfers 245 commissioners

Pvt bank promoters may be allowed 15% stake
September, 29th 2011

Private sector banks are set to get some relief from the Reserve Bank of India (RBI) on promoters stake. The regulator had earlier asked these banks to submit a road map and give a time frame for paring promoters shareholding to 10 per cent.

But, the central bank is now in favour of increasing that limit to 15 per cent, according to sources in the RBI. The move comes after the draft guidelines for new banking licences proposed that promoters of new banks float a non-operative holding company (NOHC), which would hold 40 per cent of the paid-up capital of the bank for an initial period of five years. It will then have to reduce its stake in the bank to 20 per cent within 10 years and 15 per cent within 12 years from the date of licensing.
 
The plan to allow existing bank promoters to hold 15 per cent stake will ensure a level playing field for all the players, a top official of a private sector bank, who did not wish to be named, said.

This will offer some comfort to private lenders such as Development Credit Bank (DCB), IndusInd Bank, Kotak Mahindra Bank and YES Bank, where promoters shareholding continues to be high.

According to another private bank official, the RBI move is welcome as it is impossible to dilute large stakes when the markets are so volatile. We are awaiting clarifications from the RBI on promoters shareholding before reducing stake further, he said.

The RBI had earlier expressed concern over high promoter shareholding in many private sector banks, though most of these lenders had completed 10 years of operations.

For instance, in IndusInd Bank, which commenced operations in 1994, promoters hold 19.53 per cent stake, while in DCB, which was converted into a scheduled commercial bank in 1995, promoters shareholding is 23.08 per cent.

Promoters of YES Bank, the youngest bank in the country which began operations in 2003, currently hold 26.5 per cent stake. In case of Kotak Mahindra Bank, the promoter shareholding is 45.5 per cent.

However, sources indicate that for HDFC Bank, the second-largest private sector bank in the country, the cap on promoters shareholding will not be applicable, as its promoter Housing Development Finance Corporation (HDFC), is a publicly held company. The promoters of HDFC Bank currently have 23.28 per cent stake in the bank.

 
 
Home | About Us | Terms and Conditions | Contact Us
Copyright 2017 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Team

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions