CENTRAL BANK'S relaxation of rules likely to broaden shareholder base and lead to better quality governance Wealthy individuals and finance companies can pick up more equity in private banks while non-state lenders struggling to make money could emerge as acquisition targets for those on the hunt, following the Reserve Bank of India's recent relaxation of rules aimed at shoring up capital and encouraging consolidation. Analysts said lenders of interest may include IndusInd Bank, Yes Bank, Kotak Mahindra Bank, Karur Vysya Bank, Lakshmi Vilas Bank, Tamilnad Mercantile Bank and Dhanlaxmi Bank. Banks and investors could not be immediately reached for comment. Foreign institutions that hold 5% or less in private sector lenders have already started thinking about raising their stakes, said two executives with knowledge of the matter. “The move from RBI could broaden the shareholder base and may in turn lead to better quality governance since there would be active investors on