Microfinance firm Janalakshmi Financial Services Ltd, which received an initial approval to become a small bank from the Reserve Bank of India (RBI) in September, is not planning an initial public offering (IPO) immediately to reduce foreign shareholding in the company.
The company will be restructuring itself to create a three-tier structure so that it can adhere to RBI’s guidelines which restrict the foreign ownership in small banks to 49%. Janalakshmi Financial’s current foreign shareholding stands at 72%, said V.S. Radhakrishnan, managing director and chief executive officer.
