RBI rejects SBI Cap plan to raise stake in Investec unit

THE RESERVE BANK of India has turned down a proposal by State Bank of India (SBI) to increase its stake in an institutional equities joint venture with a local unit of Investec, sources said.

- BAUU KALESH & SIDDHI NAYAK

SBI Capital Markets, an arm of SBI, had sought RBI’s approval to increase its shareholding in the partnership to around 40%, from about 20%, sources said. Concerns centered on duplication of businesses within the wider group of SBI companies, one of the sources said.