RBI may give final nod for stake increase in IndusInd Bank soon: Ashok Hinduja

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MUMBAI : IndusInd International Holdings Ltd (IIHL), promoter of IndusInd Bank, said it is likely to receive the Reserve Bank of India's final approval to increase its stake in the private-sector lender over the next two weeks. Ashok Hinduja, chairman, IIHL, said that the promoter will not look at raising its stake from the existing 16.4% to 26% immediately in one go, as it would involve infusing capital worth $1 billion. "15% to 26% stake increase, there is a policy of the regulator (RBI).

We have received the letter, which clearly said to follow the process, as per guidelines. The various forms and other information, completed. The same has gone to IndusInd Bank.

The bank has also cleared it through its board. Now, it has gone to the regulator. I am hoping that maybe in a week or two weeks we should get their response," Hinduja told reporters on Friday.

"Once we get that, we'll start the process of raising the capital through the bank or through the market. Or, we'll create a combination," he added. Also Read: Implementation of RCap resolution plan by 31 March deadline untenable: IIHL In April last year, RBI had given in-principle approval to IIHL to increase its stake in the bank to a maximum of 26%.

IIHL has a 12.49% stake in the bank, while IndusInd Ltd has a 3.9% stake in the bank, as per the the lender's latest shareholding pattern available on the BSE. IIHL is also awaiting approval from the insurance regulator Irdai for the acquisition of Reliance Capital's three insurance companies under the bankruptcy process. Once the approval is in, Hinduja is confident of repaying the entire dues to lenders within the deadline of 27 May, as per the terms of the resolution process.