|
||
|
||
Channels: Astrology | Contests | E-cards | Money | Movies | Romance | Search | Women Partner Channels: Auctions | Health | Home & Decor | Tech Education | Jobs | Matrimonial |
||
|
||
Home >
Money > Business Headlines > Report April 2, 2002 | 1435 IST |
Feedback
|
|
BankMuscat moves RBI over FDI-FII stake issueDebjoy Sengupta Lack of clear guidelines governing foreign direct investment and holdings of foreign institutional investors in banks have dampened the plans of investors scripting a takeover of Centurion Bank. Reflecting this, BankMuscat and IL&FS, which is working on behalf of the American Insurance Group, have sought a formal clarification from the Reserve Bank of India on whether FII investment would be considered differently from FDI. The clarification will help both the interested parties, especially BankMuscat, in framing a takeover package for Centurion Bank. Further, issues such as open offer in case of a takeover will also have to be considered. Meanwhile, the Indian promoters of Centurion Bank have enhanced their holding by 3.11 per cent to 26.23 per cent in the first three quarters of the 2001-02. On the other hand the percentage of shares held by "persons acting in concert" has slipped 3.84 per cent to 7.6 per cent in the same period. FIIs hold around 19 per cent, while foreign promoters hold around 18 per cent in the bank. Another 23 per cent is held by the public. Of the foreign holding, Keppel of Singapore has 17.7 per cent, while International Finance Corporation and Asian Development hold 10 per cent and 8 per cent, respectively. The board of BankMuscat met last week to discuss the issue of takeover, and so did the board of Centurion Bank. Sources said the outcome would depend on RBI's response to the clarification. BankMuscat is interested in taking over the management of the bank. In the case of IL&FS too, buying of majority holding would be followed by management control. BankMuscat will have to bring in additional funds to address capital adequacy issues. ALSO READ:
|
ADVERTISEMENT |