J&K Bank seeks RBI nod for FII stake hike

Jammu & Kashmir Bank has applied to the Reserve Bank of India to increase the limit of foreign institutional investors in the bank to 40 per cent from 33 per cent.

This follows the board's approval to increase the FII limit in the bank.

J&K Bank is a banker to the government of Jammu & Kashmir. As per the existing arrangement between the government and the bank, all state department accounts are maintained with the bank.

The government of J&K holds 53.17 per cent stake in the bank, FIIs hold 31.39 per cent, while public and others hold the remaining 15.44 per cent.

Meanwhile, sources close to the development said, two FIIs applied to the RBI for increasing their stake to 10 per cent each from their current holding of about 5 per cent.

The FIIs, according to sources, are Aberdeen Asset Managers, which holds 3.54 per cent and Fid Funds Mauritius, which hold 4.23 per cent in the bank.

The other FIIs, which hold over 1 per cent stake in the bank, are Arisaig Partners Asia (2 per cent), BSMA Ltd (1.39 per cent). Citigroup Global Markets Mauritius (1.57 per cent), CLSA Merchant Bankers (3.19 per cent), Emerging Markets Growth Fund (1.11 per cent), Goldman Sachs Investment Mauritius India (3.01 per cent), Morgan Stanley & Company International Ltd (2.74 per cent), Vontobel Fund (3.56 per cent).