J&K Bank seeks RBI nod for hiking FII pie to 40%

Jammu & Kashmir Bank (J&K Bank) has applied to the Reserve Bank of India (RBI) to increase the limit for foreign institutional investors (FIIs) in the bank to 40% from 33%. This follows the board approval to increase the FII investment limit in the bank to 40% from the current level of 33%.

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

While the government of Jammu & Kashmir holds 53.17% stake in the bank, FIIs hold 31.39% while public and others hold the remaining 15.44%.

Meanwhile, sources close to development said two FIIs have shown interest to pick up 10% stake each in the bank, and have applied to the RBI to increase their stake from their current holding of about 5% in the bank.

The FIIs that have applied to RBI include Fid Funds (Mauritius), which holds 4.23%, and Aberdeen Asset Managers, which holds 3.54%.