Pravin Kumar Tayal, promoter of Bank of Rajasthan, is all set to acquire another 5 per cent stake in the bank by this fiscal to increase his total holding to 48 per cent.
"By this year (2003-04), the promoter holding is likely to be 48 per cent. Another five per cent will be acquired through the creeping route," Bank of Rajasthan chairman Tayal told reporters in New Delhi, after being felicitated by Vice President Bhairon Singh Shekhawat for undertaking social and community upliftment programmes in Rajasthan.
At present, the promoter holding is 43 per cent and as per the Reserve Bank of India stipulations, promoter could hold upto 49 per cent equity in the bank.
Asked what is the roadmap for the acquisition, he said it would be market based and declined to divulge the nitty-gritty of the move.
Tayal said the bank had a strong base in the country and was poised for further growth in net profits and business and would be able to attract dividend this year.
The bank had made a net profit of Rs 68 crore (Rs 680 million) in 2002-03, and in the first quarter this year, the net profit grew by 100 per cent as compared to the year-ago period, he said.
The private sector bank is aiming 30 per cent growth in business income this fiscal as compared to the year-ago level and has a comfortable capital adequacy ratio of over 13 per cent as compared to the RBI mandated 9 per cent.
