State Bank of India has raised Rs 2,500 crore from bonds to fund business growth.
Here we present key recommendations of RBI panel and list out their implications for banking sector with respect to entry of corporate houses, NBFCs and other issues.
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NBFCs promoted by large corporate houses like Tata Finance, Aditya Birla Capital, Bajaj Finance, L&T Finance, Mahindra Finance and Aditya Birla Capital may now look forward to becoming universal banks.
RBI's internal working group has recommended that payments banks can convert to a small finance bank if they have run operations for 3 years.
RBI's internal working group has suggested hiking the cap on promoter holding to 26% from the current 15% for all private banks.
RBI panel suggests well-run large NBFCs with an asset size of Rs 50,000 crore and above, including those owned by corporate houses, may be considered for conversion into banks.
RBI panel proposes to allow large corporate houses to own banks in India. Will we see Bank of India, UCO Bank, Central Bank and Indian Overseas Bank privatised?
In Karur, which is the registered headquarters of Lakshmi Vilas Bank, the staff received police protection after depositors went unruly following moratorium imposed by RBI.
Employees of Lakshmi Vilas Bank want RBI to amalgamate the sick bank with an Indian PSU. They also fear DBS may shut down many branches of LVB.
DBS Group gets to speed up its expansion plans in India through takeover of Lakshmi Vilas Bank but matching the business cultures of the two banks could be challenging.
RBI's assurance comes after one-month moratorium unleashes panic among depositors who flocked to LVB branches to withdraw money.
Merger to help DBS add new retail and small and medium sized customers. Bank's customer deposits and net loans to increase by about 50%-70% following the merger, Moody's said.
RBI proposes merger of Lakshmi Vilas Bank with DBS as the troubled bank had no credible revival plan; DBS to bring in equity of Rs 2,500 cr.
ICICI Bank takes 4 years to grow the mortgage loan portfolio from Rs 1 trillion to Rs 2 trillion. Growth is aided by the bank's expansion in Tier II, III and IV cities, says ED Anup Bagchi.
RBI deputy governor Rajeshwar Rao called for a calibrated and graded regulatory framework for NBFCs.
