"IEFL and IndusInd International Holdings Limited (IIHL), a Mauritius-registered overseas corporate body and its subsidiaries are the joint promoters of IndusInd Bank, holding 56.25 per cent of its capital base. Post-merger, the promoting companies' holding is expected to be reduced by over 10 per cent to meet the Reserve Bank of India norms under which promoters of private sector banks have to reduce their shareholding to 40 per cent," IndusInd Bank said in a statement. As of now, IIHL holds 10.94 per cent in IndusInd Bank, IndusInd Ltd 9.69 per cent, Defive 4.38 per cent, and IEFL 31.25 per cent. Together, these entities hold 56.25 per cent in IndusInd Bank. Furthermore, 51 per cent of the capital base of IEFL is held by IIHL.

"The share swap ratio will decide the exact level of holding of IEFL in the bank. It is expected to go down to 43.33 per cent after the merger," IndusInd Bank CEO and MD, KR Maheshwari said.

The merger will shore up the capital base of IBL and improve its capital adequacy and net worth. IndusInd Bank has a capital base of Rs 160 crore and a net worth of Rs 533 crore. Mr Maheshwari added that the bank's plans to find a strategic partner will still continue. The bank has been holding talks with at least three foreign suitors to offer them a 16 per cent stake. However, with the upcoming merger of IEFL with IndusInd Bank, the bank will be in excess of just a shade over 3 per cent of the RBI requirement that promoters of private banks hold only 40 per cent stake in the bank.