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BOR keen on increasing stake in Bharat Overseas Bank
New Delhi, Sept 18: Private sector Bank of Rajasthan is keen on increasing its stake in Bharat Overseas Bank (BHOB) as part of its efforts to become a national level bank.
New Delhi, Sept 18: Private sector Bank of Rajasthan is keen on increasing its stake in Bharat Overseas Bank (BHOB) as part of its efforts to become a national level bank.
"We are open to it (picking up further equity) if other shareholders of BHOB are willing to offer," Pravin Kumar Tayal, chairman of Bank of Rajasthan, which holds 16 per cent
stake in the Chennai-based bank, said here.
"We are in no hurry and if other shareholders come on their own, we will definitely pick up additional stake," Tayal said.
Indian Overseas Bank holds 30 per cent stake and other shareholders are the Vysya Bank (14.66 per cent), the Federal Bank (10.67 per cent), Karur Vysya Bank and the South Indian Bank (10 per cent each) and Karnataka Bank (8.67 per cent).
The north-based Bank of Rajasthan is eyeing stakes from banks, other than IOB. As per the reserve bank guidelines, if any bank had more than one-third of total equity in another bank, then the other bank tends to become a subsidiary.
Asked to what extent BOR would pick up stake, Tayal said unless there were some formal meetings with the other shareholders, which are south-based, nothing would crystalise.
Bureau Report
"We are in no hurry and if other shareholders come on their own, we will definitely pick up additional stake," Tayal said.
Indian Overseas Bank holds 30 per cent stake and other shareholders are the Vysya Bank (14.66 per cent), the Federal Bank (10.67 per cent), Karur Vysya Bank and the South Indian Bank (10 per cent each) and Karnataka Bank (8.67 per cent).
The north-based Bank of Rajasthan is eyeing stakes from banks, other than IOB. As per the reserve bank guidelines, if any bank had more than one-third of total equity in another bank, then the other bank tends to become a subsidiary.
Asked to what extent BOR would pick up stake, Tayal said unless there were some formal meetings with the other shareholders, which are south-based, nothing would crystalise.
Bureau Report