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IndusInd Bank in an exchange filing said \u201cRoute One Investment Company LP, USA (ROIC) is an existing investor holding approximately 4.96% of the issued and subscribed capital of the Bank,\u201d adding \u201cROIC approached the Reserve Bank of India seeking a prior approval to increase their stake in the Bank upto 10%, in accordance with the RBI Master Direction on Prior Approval for Acquisition of Shares in Private Sector Banks,\u201d IndusInd bank noted \u201cBasis reference from RBI, the Board of Directors of the Bank, in their meeting held on July 5, 2020, granted its approval to the proposed acquisition of Route One Investment Company, L.P. in our Bank. RBI has forwarded the Bank a copy of the letter addressed to ROIC, granting approval for increasing their shareholding up to 10% of the paid-up voting equity capital of IndusInd Bank Limited.\u201d<\/p>\n
The bank’s promoter group, the Hinduja\u2019s, currently hold 14.65% stake in IndusInd Bank. The group had in the past petitioned the central bank to increase its stake in the bank to 26%, which reportedly elicited a negative response from the RBI. Ashok Hinduja<\/a>, Chairman of the Hinduja Group (India)<\/a> in an interview to The Economic Times (ET) in March cited the example of relaxations offered to Uday Kotak on his ownership stake in Kotak Mahindra Bank, noting \u201c\u201cWhen I saw that Kotak Mahindra has got a dispensation, we also thought of writing to them. Why not give us that dispensation as well? Let\u2019s see how they respond,\u201d Hinduja further cited \u201c\u201cThe stronger the promoter, the more committed he will be \u2014 more capital will be infused by the promoter in the bank. He is more committed to the entity and the bank will be stronger,\u201d<\/p>\n RBI norms stipulate that privately owned bank\u2019s promoters have to pare their ownership holding to 40% within three years, 20% within 10 years and to 15% within a period of 15 years.<\/p>\n<\/div>\n