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RBI mulls paring promoters' pie in new private banks…

The Reserve Bank of India is looking into the issue of diluting the promoters holding to 40 per cent in the new private sector banks on case-to-case basis, according to RBI deputy governor S P Talwar.

Talking to newspersons after inaugurating the new 'large corporate branch' of the Punjab National Bank in Bombay on Wednesday, Talwar said: "We don't have a rigid stand on the issue and may extend their deadline of reducing the holding up to 40 per cent, looking at the problems at the individual bank levels."

Talwar said that the RBI would shortly announce new norms for the private sector banks that would insist higher capital adequacy ratio and initial paid-up capital.

"Next week, we will be issuing new entry norms for the private sector banks," Talwar said.

He said that most of the Indian banks have been maintaining much higher capital adequacy ratio than the stipulated 9 per cent.

However, few banks including old private sector banks are suffering from low capital adequacy ratios.

While the issues related to the old private sector banks would be tackled in the new policy measures, he said that the decision of recapitalisation of the weak public sector banks would be taken up by the government shortly.

UNI

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