Billionaire Brothers Seek Bigger IndusInd Stake Under New Rules

(Bloomberg) -- The billionaire Hindujas brothers are looking to increase their stake in IndusInd Bank Ltd., the lender they founded, now that the Reserve Bank of India has eased ownership rules for the country’s private sector banks.

Ashok Hinduja, who chairs founding firm IIHL, said in a statement Saturday he’s waiting to act until details of the new rules are spelled out by the RBI, which is also the nation’s banking regulator.

“We eagerly await the operating guidelines as it gives the promoters an opportunity to inject capital to increase stake up to 26%,” he said.

While the RBI on Friday rejected a contentious idea that would have allowed big businesses to set up banks, the regulator did approve a raft of other proposals that included allowing founders to raise their stakes in private banks to 26% from 15%.

That new rule paves the way for more consolidated control of lenders like IndusInd and Kotak Mahindra Bank Ltd., which was founded by Uday Kotak, Asia’s richest banker.