Promoter stake will be cut to 10% in two years

Pravin Kumar Tayal claims he has built an institution in Bank of Rajasthan with its net worth having grown to Rs 11,000 crore from just Rs 6 crore almost a decade ago. In an
interview with Sneha Shah, Tayal calls the Sebi ban on trading in stocks imposed on the Tayal group and the special RBI audit of the bank’s books as sheer bad luck.
Excerpts:

Q The bank issued a statement on Tuesday saying the Tayals are not the promoters of the bank and are just a majority stakeholder. Are you losing control over the bank?
A I do not have control over the bank. I just have around 28 per cent stake in it.

Q What is your view on the recent ban by Sebi and the special audit ordered by RBI?
A It is sheer bad luck and misunderstanding and we will try to resolve it with the regulators by answering all their queries. We will eme-rge unscathed from this and the country will see it.

n The bank has been accu-sed of violating a string of regulations.
The bank has grown from a mere Rs 6 crore institution to Rs 11,000 crore in just 10 years. We have built the institution what it is today. We want to clear the issue with the regulator and it is just a matter of time before there is more clarity on these issues.

Q Where have the problems then emerged from? RBI has slapped a fine of Rs 25 lakh for the same.
A I will not try to reply to that. Let this matter be he-ard by them (RBI). It is their own managing director sitting there, managing the bank. If he has not been able to find any problem, there aren’t any.

Q But the MD was appointed by RBI only after the problems came to the fore.
A I will wait for the RBI to clear the air around it.

Q Some of the promoter gr-oup companies have been accused of availing loans fr-om the bank by compromising on certain norms. What is your take?
A I have not taken a single rupee from the bank. As far as the loans to promoter group companies and related family members are concerned, it is totally wrong. All the loans with the banks are excellent. We have improved the non-performing assets (NPAs) from 25 per cent in 1999 to 1 per cent in 2009.

Q Has RBI asked you to bri-ng down your stake in bank with immediate effect?
A They (RBI) have not communicated anything to me. But as per the regulations, I will bring down my holding to 10 per cent over the next two years.

snehashah@mydigitalfc.com