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Tayals wrap up three-way split

Mumbai, March 23: The Tayals have parted ways. The Rs 3,000-crore group has been carved up among three brothers — Pravin, Navin and Sanjay — in a split devoid of the rancour that usually leads to such separation.

Pravin Kumar Tayal, the eldest of them all, told The Telegraph that the move is acceptable to all. “It is unfair on my part to control all the businesses in our group. Therefore, I have decided to part with the textile businesses and concentrate on banking alone,” he said.

Until the Tayals acquired a controlling stake in Bank of Rajasthan (BoR) a few years ago, the group was known in the industry for its textile units in Silvassa.

Among the listed companies Pravin has handed over to his brothers are Eskay Knit (India) and Krishna Lifestyle Technologies. He will remain at the helm of Bank of Rajasthan, but has already given up his board berths in the two textile companies of the group.

Industry watchers are surprised at the way Tayal senior signed away the control of his textile to his brothers. He is credited with having built the group brick by brick, and has a reputation for being a hands-on manager. This has led several corporate observers to believe that the brothers will continue to consult him.

Another reason for the family split could be a Reserve Bank of India (RBI) rule that requires promoters to maintain an “arms length relationship” between their bank and other businesses of the same group.

The senior Tayal has a different take on the split: He feels the change in the family structure is good for all members. “The separation has taken place,” he said, adding that he has stayed away from other family concerns.

“I do not have control over any of the group companies. Alternatively, my brothers do not have any stake in Bank of Rajasthan.” Tayal, sources say, has gained prominence because of his holding in the bank, which has a sizeable presence in Rajasthan and has a wide network of branches in Gujarat and Maharashtra. In addition to that, it controls a sizeable equity stake in the Tamil Nadu-based Bharat Overseas Bank.

Having lived down several years in the red, the bank is on course to a strong comeback. It has 375 branches and plans to increase the number to 500 over three years.

Tayal senior concedes that the RBI regulation to separate the bank from other group firms has played a role in the split he chose to describe as an “amicable” one. “The central bank has liked what we have done, although it was not the only compulsion for us,” he added.

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