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RBI raises cap on promoter holding in banks

News: RBI has accepted the working group recommendation to raise cap on promoter stake to 26% in private banks from 15%. This would be uniform for all types of promoters and would allow promoters, who have diluted their holding to below 26%, also to raise it.

Views: The recommendation on allowing promoters to hold 26% stake in their bank will prove beneficial for the promoters of banks such as HDFC Bank, IndusInd, Bandhan, SFBs and PSU banks on sale.

Impact: Positive