National Stock Exchange member Pradeep Bhavnani has picked 7% stake in United Western Bank, UWB. Bhavnani says that he is concerned about the depositors and shareholders of UWB.
Bhavnani told CNBC-TV18 that he wants to buy UWB stake to protect small shareholders.
He further said that he will buy more shares today to up his stake to 15-20%.
Excerpts of CNBC-TV18's exclusive interview with Pradeep Bhavnani:
What's your game plan? What are you looking at with this kind of a stake buy in United Western Bank?
I am not only an NSE broker but I am also the President of National Association of Small Investors. There are two angles from which I am approaching this. First is the fact that the government has imposed a moratorium on the bank and one fine morning, one comes to know that the bank is closed, this practice is totally incorrect. That's what I want to amend.
Second, I want to buy stake in United Western Bank only because I want to protect and bail out the shareholders and deposit holders.
Did you not pick up 10% in Global Trust Bank as well from the market, when that stock was falling?
Yes, I did that. But at that point of time, it was a different story altogether because the announcement was already made and here, one has to put a proposal. I also want to simultaneously bail out the farmers who are attempting suicides.
How much is the stake that you hold now in UWB, and what is your plan in terms of participating in the bank's future plans?
Today, I may buy more shares and I want to up my stake to 15-20%, from the profit that I gained yesterday. Today I will make a proposal to Sebi, RBI and also to the Finance Ministry that even one person can do wonders.
By the end of it, what happened to all that stake that you picked up in GTB?
I have to wait and watch because I gained a lot there too. And I picked up shares in intra-day trading. I have to wait and watch, there have been things going on with OBC (Oriental Bank of Commerce) regarding NPAs. I think one day, Oriental Bank of Commerce will also fall in the same track.
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