BhOB awaits RBI nod for public float

The Reserve Bank of India (RBI) will take a final decision on Bharat Overseas Bank's (BhOB) initial public offering (IPO) of about Rs 150 crore and the resultant dilution of seven banks' stake in BhOB.

On the sidelines of a function toj launch a debit card, T S Narayanasami, chairman and managing director, said that the central bank will be the final decision maker on the IPO.

IOB is the majority shareholder in BhOB with 30 per cent stake. It was IOB's Thailand branch that was converted into a bank after nationalisation of banks in 1969 as Thailand government regulation did not permit the functioning of foreign owned bank.

BhOB has the unique distinction of being promoted by seven banks, namely, IOB (30 per cent), ING Vysya (14.66 per cent), Bank of Rajasthan (16 per cent), Federal Bank (10.67 per cent), Karur Vysya Bank (10 per cent), South Indian Bank (10 per cent) and Karnataka Bank (8.67 per cent). The board of BhOB, made up of representatives of each of the seven banks, has given its approval for the IPO.

Narayanaswami declined to comment on a media report which said that there were differences among BhOB's promoters on some aspects of the IPO.

About the general insurance venture that is to be floated by Allahabad Bank and IOB, Narayanasami said an overseas partner, two private banks will roped in with Allahabad Bank having the majority stake.

He said the IOB board, which was to meet in a fortnight, would decide on the general insurance company. After the approval of respective banks' boards, the approval of RBI and insurance regulatory and development authority would be sought, he added.