Nandan Mohan Nilekani, co-founder and former chief executive officer (CEO) of Infosys Technologies (Infosys) and current chairman of the Unique Identification Authority of India (UIDAI), has picked up a minority interest in the Kerala-based Dhanlaxmi Bank. This may perhaps be Nilekani’s first financial investment in a business venture outside Infosys, the country’s second-largest technology services firm in terms of business volumes. Dhanlaxmi Bank is among the half a dozen odd private sector banks in the country which does not have any domestic or foreign promoters.
According to the latest shareholding pattern filed by Dhanlaxmi Bank with stock exchanges, Nilekani holds 9,93,827 shares in the bank which translates into 1.17% of the total outstanding stock of the private sector lender as on March 31, 2011. Nilekani had picked up the stake from the open market. Nilekani could not be reached for comments, despite repeated attempts.
Nilekani and his family holds 3.15% stake in Infosys, the second-largest promoter share holder in Infosys after its founder chairman and the poster boy of India’s software revolution, NR Narayana Murthy and his family.
Besides Nilekani, Birla Sun Life Insurance Company has picked up close to 3% in Dhanlaxmi. State Bank of India, the country’s largest banker, has also increased its stake through its subsidiary SBI Mutual Fund. SBI Tax Advantage Fund has bought 9,10,000 shares of Dhanlaxmi Bank through the fourth quarter ending March 31, 2011 which translates into a tad over 1%. SBI Mutual Fund, through its investment vehicle Magnum Global Fund is holding 1.62% stake in Dhanalaxmi as of the end of the last financial year. Together, SBI and its affiliates hold 2.69% in Dhanlaxmi.
Nilekani, who left Patni Computers with N Narayana Murthy, was CEO of Infosys from March 2002 to April 2007, when he moved up to become co-chairman, leaving the CEO post to Kris Gopalakrishnan. He left Infosys on July 2009 to become the chairperson of UIDAI at the rank of a cabinet minister on an invitation from Prime Minister Manmohan Singh. He is the co-founder National Association of Software and Service Companies (Nasscom) and the Bangalore Chapter of The IndUS Entrepreneurs (TiE).
Incorporated in 1927, Dhanlaxmi Bank, with its 210 branches, is one of the old-generation private sector lender sans promoters based in Thrissur in Kerala. The bank recently launched a campaign to shed its regional tag by going for a brand makeover with plans to set up more branches in major cities outside south India. The bank had clocked a total income of R1,053.19 crore for the year ending March 2011 and netted a profit of R26.06 crore.