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Rediff News  All News  » Business » Arora ban won't hit share: J&K Bank

Arora ban won't hit share: J&K Bank

August 13, 2003 12:53 IST

The Jammu and Kashmir Bank chairman M Y Khan does not expect the bank's share price to be affected by the recent decision of the Securities Exchange Board of India to bar Samir Arora.

Alliance Capital Mutual Fund holds a two per cent stake in the Kashmir-based bank.

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Khan told newspersons in Chennai on Tuesday that, ACMF shareholding is marginal and will not have any major impact on the JKB scrip. At present, the JKB scrip is being traded around the price of Rs 214.

Scrips of Samir Arora favourites such as Digital GlobalSoft, Hinduja TMT, Balaji Telefilms and Mastek have seen a sharp fall in prices ever since the recent Sebi decision.

On the issue of bringing in a strategic investor, Khan pointed out that the bank was in talks with three overseas financial institutions.

Khan said the foreign institutions would not hold a stake of more than 10 per cent in the bank.

"The whole process is expected to be over in the next three months," he added.

"The main reason for roping in a foreign institution into the equity holding of the bank will be solely for value additions. Our capital adequacy ratio is at 16.4 per cent which has been well above the required standards and there is no requirement for additional capital," he said.
BS Bureau in Chennai