The new licences for banks may finally see the light of day as the paper for new licenses has completed one year in circulation last week. New regulationso on which banks have ressted commenting include:

 

1. Limitation on voting stock for non banking promoters

2. Limitation on FDI to 49% for Banks till they complete 10 years of operation suggested by RBI

3. Initial Capital, we have pushed for Rs 2500 crores but likely more than INR 5 bln at INR 10 bln or more 

4. Takeovers may have  be cleared as valid under the new Takeover code

5. Industrial cross holdings and sale of dominan holdings may be additionally regulated by changes to the Banking Regulation Act first 

 

A good wait for Reliance, M&M and LIC Housing 

Again though, these regulations will be draft and according to ET, no. 5 above is a strong reason nothing would happen now as other strictures from RBI have not moved private owners of banks in the South

 

 

Posted via email from The investment blog on Post