ING may settle for less stake in Vysya Bank

Dutch banking major ING, which had plans of increasing its stake in Bangalore-based Vysya Bank to 49 per cent from the existing 20 per cent,...

By: ENS Economic Bureau
Bangalore | July 30, 2002 12:00 AM IST

1 min read

Dutch banking major ING, which had plans of increasing its stake in Bangalore-based Vysya Bank to 49 per cent from the existing 20 per cent, may not go ahead with its proposed plan as it would breach the 49 per cent foreign direct investment (FDI) cap for banks.

‘‘FIPB has not yet taken up the application. ING is also aware of the 49 per cent cap and they fully understand the situation. They are also willing to accept less than 49 per cent,’’ ING-Vysya Bank MD and CEO K Balasubramanian told this paper here on Monday. Balasubramanian said the proposal had to be first cleared by the Reserve Bank of India (RBI) before it went to FIPB.

‘‘ING is not asking for an exception. Moreover, the application has not yet been cleared by the RBI. So, where is the question of breaching the FDI cap,’’ he asked.

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