According to the new Reserve Bank of India (RBI) norms, promoters can henceforth hold up to 26 percent. The original rule was that they can hold only 15 percent in their own banks. So, there was an overhang over Kotak Mahindra Bank. Now, Uday Kotak does not have to reduce his 26 percent stake at all.

It could also be an advantage to IndusInd Bank because the Hindujas have already put out a statement that as and when the directives come, they will increase stake.

However, all new investments have to pass RBI’s ‘fit and proper’ hurdle, nevertheless that could be a positive.

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RBI norms: Promoter ownership to impact Kotak, IndusInd Banks, says HDFC Securities

To know more, watch the accompanying video of CNBC-TV18’s Latha Venkatesh.