L&T Finance Holdings, which aspires to set up a banking business, may not be able to set up a non-operative financial holding company (NOFHC) as mandated by the Reserve Bank of India (RBI) because its public shareholding is below 51 per cent. According to the clarification issued by the central bank on new bank license norms, private players aspiring to enter the banking space need to create a NOF
Tag: Banking
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Experts call for banking operation in unbanked areas
Experts feel that the initiative of the Reserve Bank of India (RBI) to provide new banking licenses must promote banking in the under-banked areas of the country. They feel that residents in the under-banked areas are, for the most part, dependent on shadow-banking operators because of the formal banking sector's failure to give them access
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Bank licensees may set up NOFHC
Reserve Bank of India (RBI) clarified that the prospective bank licensee must set up a non-operative financial holding company (NOFHC). Further, the central bank said if any individual belonging to the promoter group chooses to become a promoter of the NOFHC, he along with his relatives and along
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RBI to extend validity of banking license
Reserve Bank of India (RBI) decided to extend the validity period of the in-principle approval for setting up a banking business from one year to 18 months. The central bank announced this decision in a recent clarification on the draft banking license norms issued some months ago. According to the original norms, the in-principle approval is valid upto 12 months and if the licensee is unab
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Banks take steps to recover bad loans
Media reports indicate that several public sector banks (PSBs) are taking steps to recover loan amount from defaulting corporate borrowers by publishing their names and thereby denting their image. This move by state-run banks is a remarkable shift from their traditional approach of going soft with defaulting borrowers
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India Post’s banking dream gets thumbs down from govt
Unconfirmed reports indicate that the union finance ministry opposes the proposal of India Port to foray into banking venture. Officials of the finance ministry raised doubt about the ability of India Post to conduct banking business. It may be recalled that India Post plans to apply for a banking license from
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Net profit of Corporation Bank rises marginally
Corporation Bank posted a net profit of Rs 3,555.310 million for the quarter ended March 31, 2013 as compared to Rs 3,512.625 million for the quarter ended March 31, 2012. Total Income has increased from Rs 40,091.798 million for the quarter ended March 31, 2012 to Rs 46,354.956 million for the quarter ended March 31, 2013
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RBI fixes credit-deposit growth target for J&K
Addressing a special meeting of J&K state level bankersÂ’ committee (J&K SLBC) at SKICC, Reserve Bank of India (RBI) Governor D Subba Rao fixed a target of achieving 4 percent growth in credit deposit (CD) ratio across the state and across the banks during 2013-14. According to the fresh target the present percentage would rise from 36 percent to 40 percent by end of March 2014
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Banks fail to pass on entire benefit to customers
In the policy statement, Reserve Bank of India (RBI) said banks reduced lending rates on an average by 36 basis points to 12.17 per cent during 2012-13 (up to February). This is compared to a 50 basis points cut in repo rate and 75 basis points reduction in CRR by the RBI in 2012-13
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India Inc not gung ho about policy outcome
Corporate India is not much excited about the 25 basis point reduction in the repo rate by the Reserve Bank of India (RBI) as they feel it to be too less. However, they also agree that the central bank cannot do much the high level of retail inflation and high current account deficit