NPCI widens shareholding base to 56 banks

National Payments Corporation of India (NPCI) on Monday said it has broadened its shareholding base to 56 banks from 10 earlier.

The 46 new entities comprising 13 public, 15 private, 1 foreign, 10 multistate co-operative banks and 7 regional rural banks (RRBs) have now joined the shareholding base, NPCI said in a statement.

The addition of new banks has increased NPCI's paid up capital to Rs 133 crore from Rs 100 crore, its managing director and chief executive officer A P Hota said.

"Being the payments system utility for all the banks in the country, it was a natural progression and was also a requirement from the Reserve Bank of India (RBI). The expansion will make NPCI a truly community-owned institution," he said.

Earlier, the 10 promoter banks of NPCI were State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Bank of India, Union Bank of India, ICICI Bank, HDFC Bank, Citibank and HSBC.

Earlier, six public sector banks were holding 60 per cent stake in the corporation while private and foreign banks held the rest.

With this round of broad-basing of shareholders, state-run banks and RRBs now hold 57 per cent.

Holding of private, foreign and co-operative banks stands at 43 per cent.

According to the RBI, the stake of state-run banks has to be reduced to 51 per cent, Hota said.

"There is a scope for further broad-basing of shareholders as state-run banks still holds 57 per cent. We may increase the base later but as of now there is no need," he added.

Hota said small finance banks and payment banks will be added to NPCI's shareholders base later.

"We may look at them whenever they start their operations," he said.