RBI panel suggests hike in promoter stake cap to 26%, non-promoter to 15%

The cap on promoters’ stake in private banks has been proposed to be raised to 26 per cent from 15 per cent over a period of 15 years. For non-promoter shareholding, a uniform cap of 15 per cent has been proposed – up from 10 per cent. Promoters can choose to bring down the holding to even below 26 per cent at any time after a lock-in period of five years. And, intermediate sub-targets between 5 and 15 years may not be required, but at the time of issuing licences, promoters may submit a dilution schedule to the (RBI) for approval.

These are among the key recommendations made by the internal committee of the RBI, set up to review the extant ownership guidelines and corporate structure for private banks in the country. Comments on the report are to be submitted by January 15.

The small finance banks (SFB) guidelines, which permit 26 per cent holding in the long run, allow non-banking financial companies (NBFCs) and local area banks to start with 26 per cent if the entity has already diluted holding due to regulatory norms.

Read More

Vodafone Idea, Bharti Infratel shares soar on completion of merger deal

Shares of Ltd (VIL) and surged on Friday on completion of the and Indus Towers merger deal.

The scrip of debt-ridden VIL jumped over 8 per cent while that of soared 19 per cent.

A day after the announcement about completion of the deal, Bharti Infratel skyrocketed 19.26 per cent to Rs 221.70, after touching an intra-day high of Rs 223.05 on the NSE.

The stock closed 17.73 per cent higher at Rs 218.50 on the BSE after touching an intra-day high of Rs 222.70.

VIL shares gained 8.31 per cent to close at Rs 10.04 on the BSE. It had touched an intra-day high of Rs 10.13. On the NSE, the scrip rose 7.57 per cent to close at Rs 9.95 apiece after touching an intra-day high of Rs 10.15.

According to a regulatory filing, the merger of Bharti Infratel and Indus Towers to create a mega tower company has been completed, and has received about Rs 3,760 crore cash for its 11.15 per cent holding in Indus.

As promoters of the

Read More

Cuba Reopens But Faces Challenge Wooing Back Tourists

Cuba is reopening its doors to foreign tourists after an eight-month shutdown due to the coronavirus pandemic, but the cash-strapped country faces an uphill struggle to woo back wary travelers.

Tourism chiefs are banking on the island’s track record of keeping the virus in check to win back holidaymakers.

“This is a major challenge,” said Francisco Camps, deputy general manager of Melia, a Spanish hotel chain that currently is operating only 10 of its 34 locations in Cuba.

A receptionist sanitizes her hands at the Melia Habana Hotel in Havana — Cuba is reopening its doors to foreign tourists after months of coronavirus-related closures, but will travelers return?

The industry is pinning its hopes for the November-April high season on the capital Havana, the country’s main tourist draw, which opened its international airport last weekend.

With its old fashioned Caribbean charm, the UNESCO World Heritage city attracts hundreds of thousands of visitors every year.

“Havana is important because it has regular flights, which allows connections with Europe,” says Camps.

“It also allows a flow of visitors who do not only come to see the city but also do tours” — bringing more tourist dollars than mere

Read More