While Industrial Development Bank of India (IDBI) has decided to reduce its stake in Credit Analysis & Research Ltd (Care) from the present 26 per cent to less than 10 per cent, Industrial Finance Corporation of India (IFCI) and ICICI will maintain status quo with regard to their holdings in Icra and Crisil. ICICI, IDBI and IFCI are the main promoters of Crisil, Care and Icra respectively.

"Canara Bank (23 per cent) and Unit Trust of India (UTI) (12.5 per cent) also hold stakes in excess of 10 per cent in Care, while Federal Bank, Vysya Bank and others hold less than 10 per cent each," a senior Care official told The Financial Expressr, adding that these institutions have notexpressed any plans of reduction in their stakes.

Although a final decision is yet to be taken about which institutions or banks the IDBI stakes are going to be offloaded to,the Life Insurance Corporation, General Insurance Corporation and Exim Bank are likely candidates. The view doing the rounds in IDBI is that unless the stakes are lowered,it could not only create problems in the rating of bond issues (issues above Rs 100 crore require two mandatory ratings),but also affect the business operations of Care.

IFCI, on the other hand, is not going in for a lowering of its 26 per cent stake in Icra."Currently only two institutions hold more than 10 per cent stake in Icra -- State Bank of India (SBI) holds 11 per cent and Industrial Finance Corporation of India (IFCI) holds about 26 per cent stake. To date, we have not had any discussions with either of them on reduction of their stake in Icra and neither has Icra sought any such dilution of holdings," Icra's managing director, PK Choudhary said.

As faras Crisil is concerned, Unit Trust of India (UTI), which holds 13.3 per cent, and ICICI, which holds 12.8 per cent, are the only institutions holding in-excess of 10 per cent stake in the CRA. "The institutional promoters are not planning to lower their stake in Crisil," the rating agency's managing director, R Ravimohan said.

However, sources close to the Unit Trust of India said that it has already off-loaded part of its stake in Crisil in the secondary markets and also plans to lower its holdings in Care.

Meanwhile, Kalpana Morparia, senior general manager, ICICI, has declined any possibility of the DFI reducing its stake in Crisil.