Tayals not selling stake in BoR

Bank of Rajasthan (BoR) promoters Tayals today said that their stake was not up for sale, contrary to reports that discussions were on between them and private sector giants ICICI Bank and HDFC Group.

BoR, whose promoters and related entities were in March banned by market regulator Sebi from stock markets over promoters increasing their stake, has a network of 463 branches.

Reserve Bank of India too had ordered a special audit of books of accounts of the BoR suspecting violation of operational norms by the lender.

ICICI Bank and HDFC Group have, however, declined to comment on whether they were talking to Bank of Rajasthan for acquiring the Tayal-promoted lender whose share dropped over 5 per cent to close at Rs 84.75 on the Bombay Stock Exchange.

 

"We are totally committed to the bank. There is no talk of exiting from the bank," P K Tayal said when asked whether the Tayals were talking to private banks for selling stake in the BoR. "We will do whatever is in the interest of shareholders and customers of the bank", he added.

Market regulator Securities and Exchange Board of India (Sebi) had in March barred 100 entities related to the BoR, including several members from the Tayal family from stock market on allegations of fraudulently raising stake in the bank.

ICICI Bank had last acquired Bank of Madura, while HDFC Bank's last purchase was Centurion Bank of Punjab.