Promoter, PE stake may go up in private banks; IndusInd, HDFC Bank to gain

The role of promoters and private equity (PE) players is set to become more prominent in private sector banks, which may have to go to the market to raise equity capital in the next six-nine months, said sources in the know.
 

Lenders are staring at unexpected asset quality losses due to the slowdown in economic activity after the countrywide lockdown. This would impact the capital adequacy of banks adversely.  “Promoters may increase their stake up to 26 per cent from the current levels. For private banks not backed by promoters, a single-entity PE may be allowed to pick 15 per