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Article: Mopups to dilute UTI Bank stake: HSBC.
- Article from:
- Economic Times (New Delhi, India)
- Article date:
- March 11, 2005
CopyrightCOPYRIGHT 2005 The Economic Times. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Mar. 11--MUMBAI, India -- HSBC is hoping that successive capital mopups by UTI Bank would dilute its stake in the private bank from the current 14.58 percent to a level more acceptable to the financial regulator.
The new RBI guidelines say that a bank with branches in India can have a maximum 5 percent stake in a local private bank.
"There is an ongoing dialogue with the RBI. The UTI Bank GDR will dilute our stake in the bank to 12.5 percent. Given the voracious appetite of private banks, it could be possible that further dilution takes place," HSBC India CEO Niall Booker told the media here today. He added that the RBI has not imposed stringent ...