Great article, I did not actually know much about PBs and why were they actually kept. Also, could you tell why does the RBI limit promoter holdings, especially if the promoter already has a huge sway on the board and banking decisions?
Hey HSP, so banking is a highly regulator sector. RBI is always afraid that a promoter may get too powerful. Sometimes it is unfair to people like Uday Kotak. But sometimes it is fair people like Rana Kapoor. So being a neutral organisation, it needs to make laws assuming the worst. As for sway on the board, RBI’s recent circular on board structure aims to balance that. I have written about it in one of the editions.
very well explained Anirudha
Thanks Mrinal.
Wonderful article with equally wonderful presentation.
Thank you Zara. Glad you liked it!
Excellent Article !
Good details, loved it.
Very well explained guys
Great article, I did not actually know much about PBs and why were they actually kept. Also, could you tell why does the RBI limit promoter holdings, especially if the promoter already has a huge sway on the board and banking decisions?
Hey HSP, so banking is a highly regulator sector. RBI is always afraid that a promoter may get too powerful. Sometimes it is unfair to people like Uday Kotak. But sometimes it is fair people like Rana Kapoor. So being a neutral organisation, it needs to make laws assuming the worst. As for sway on the board, RBI’s recent circular on board structure aims to balance that. I have written about it in one of the editions.