Another new private sector bank, which will have Rabo India as its strategic partner, will start operations by July -August this year. Three professional bankers -- Ashok Kapur, Harkirat Singh and Rana Kapoor -- will have the largest stakeholding in this bank.

"Rabobank will be strategic financial partner," said Rana Kapoor, the managing director and CEO of Rabo India.

The Reserve Bank of India had on January 31, 2002, granted an in-principle approval to Kotak Mahindra Finance Ltd and the professionals who had teamed up with Rabo India to set up commercial banks.

The approval was valid for a year to enable the applicants to mobilise the mandatory Rs 200 crore (Rs 2 billion) capital and to fulfil other conditions.

The RBI had on February 6, issued a banking licence to Kotak Mahindra Finance Ltd. Meanwhile, the RBI had, according to sources, given six months to the professionals to get their new bank going.

Earlier this month Rabobank Nederland took full control of Rabo India by buying out the 25 per cent stake held in it by Ashok Kapur, Harkirat Singh and Rana Kapoor.

It had also injected $25 million into the Indian operations.

"There will be four spokes to the ownership wheel: the Indian promoters will have the largest stake, while Rabobank will be the strategic partner. A part of the stake will be held by an Employees Trust Fund. And, consequent to the launch of the bank, there will be a private placement or an initial public offer," Kapoor said.

He pointed out that as more capital will be raised, the promoters' stake will come down and that of the external parties will rise. Rabo is likely to hold less than 49 per cent stake in the bank.