The fresh decision reversed Central Banks earlier ruling to limit NDBs holding in the commercial banking entity to 25 per cent and is an interim measure until Parliament approves the merger. rn
rnThe approval is also on condition that NDB will sell off all shares it buys above the 51 percent limit within a year.
The clause was put in, since any acquisition above 30 percent, triggers off the Takeovers & Mergers Code.rn
rnNDB currently hold up to 22.5 per cent in NDB Bank, while the Janashakthi Group and parties close to them hold about 14 per cent while Gold Quest own a 9.98 per cent stake. rn
rnThe interim measure will help NDB Bank source fresh funds to raise its capital adequacy and expand its operation.rn
rnThe proposed merger will see NDB Bank shareholders given shares in the parent company (NDB), in exchange for the transfer of the commercial banks net assets to NDB. rn
rn”This transfer will be based on valuations of the net assets of NDB Bank and NDB, to be carried out by an internationa