Bank of Rajasthan is keen on increasing its stake in Bharat Overseas Bank (BhOB) as part of its efforts to become a national level bank.

"We are open to it (picking up further equity) if other shareholders of BhOB are willing to offer," Pravin Kumar Tayal, chairman of Bank of Rajasthan, which holds 16 per cent stake in the Chennai-based bank, told PTI in New Delhi on Thursday.

"We are in no hurry and if other shareholders come on their own, we will definitely pick up additional stake," Tayal said.

Indian Overseas Bank holds 30 per cent stake and the other shareholders are The Vysya Bank (14.66 per cent), The Federal Bank (10.67 per cent), Karur Vysya Bank and The South Indian Bank (10 per cent each), and Karnataka Bank (8.67 per cent).

The north-based Bank of Rajasthan is eyeing stakes from banks, other than IOB. As per the Reserve Bank of India guidelines, if any bank had more than one-third of total equity in another bank, then the other bank tends to become a subsidiary.

Asked to what extent BoR would pick up stake, Tayal said unless there were some formal meetings with the other shareholders, which are South-based, nothing would crystalise.

BhOB reported an over 25 per cent growth in net profit to Rs 28.52 crore (Rs 285.2 million) in 2002-03 as compared to Rs 22.75 crore (Rs 227.5 million) in the previous year.

Picking up further equity in BhOB would give leeway for Bank of Rajasthan as it could get more share in the profits as compared to opening more branches, which carried higher costs.