RBI guidelines may prompt J&K Bank to dilute promoter shareholding

The union territory of Jammu & Kashmir has 64.5 per cent stake in J&K Bank while UT of Ladakh has about 4.5% stake

Jammu & Kashmir Bank, where promoters are the Union Territories of J&K and Ladakh, may have to bring down their shareholding once the Reserve Bank of India (RBI) prescribes a promoter stake dilution plan.

On Monday, the banking regulator released guidelines on acquisition and holding of shares of banks. It said that in specific cases where state government or the Centre are promoters or have been specifically permitted by the RBI to hold a higher shareholding as promoter/non-promoter, the regulator may prescribe a differentiated shareholding dilution plan for such holdings.

While the Union Territory of J&K has a 63.5 per