INSUBCONTINENT EXCLUSIVE:
initial lock-in requirements of holding a minimum 40 per cent stake by promoters in private banks.RBI favors continuation of the 40 per cent
control of the promoter group till the business is properly established and stabilised.It will also ensure that the promoter remain
committed to the bank in the formative years, providing it necessary strategic direction
have not mandated any cap on promoter's shareholding in the first five years as initially it may be challenging for a new bank to raise
capital from external sources or investors.So allowing them to hold higher stake will enable the promoter to infuse additional capital, as
and when required, the RBI said, accepting the report.
