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: RBI
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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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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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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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Tighter provisioning norms may hit banks’ margins
Following the tightening of norms on provisioning for restructured loans by Reserve Bank of India (RBI), banks might have to set aside Rs 1,500-2,500 crore as provisions in 2013-14 for their existing recast loan book. Ratings agency Icra said this in a report. Recently, the central bank said banks have to raise provisioning for the existing stock of restructured assets to 5 per cent in a phased manner over three years from the
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RBI to take policy decision based on macroeconomy
The Reserve Bank of India (RBI) Governor Duvvuri Subbarao informed that the central bank would consider macro economic factors and "more importantly" the current account deficit before taking monetary policy stance. He attributed the depreciation of the Indian rupee to high current account deficit. The said deficit rose to a reco
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RBI to take policy decision based on macroeconomy
The Reserve Bank of India (RBI) Governor Duvvuri Subbarao informed that the central bank would consider macro economic factors and "more importantly" the current account deficit before taking monetary policy stance. He attributed the depreciation of the Indian rupee to high current account deficit. The said deficit rose to a reco
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RBI tightens restructuring norms of infra projects
The Reserve Bank of India (RBI) on May 30 has announced its final guidelines provisioning norms for restructured accounts and asset classification.
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ECB facility may promote affordable housing projects
Industry players expect the Reserve Bank of India's (RBI) move to allow real estate developers raise funds from External Commercial Borrowings (ECB) would increase the supply of low-cost houses. It may be recalled that the central bank allowed developers and housing finance companies to raise a maximum of $1 billion for affordable housing
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RBI to continue purchase of govt bonds
Reserve Bank of India (RBI) continues to purchase government bonds through the open market operation (OMO) in order to ease liquidity constraint in the banking system. This was hinted by Economic Affairs Secretary Arvind Mayaram when he said the government doesn't think the central bank has slowed the pace of its bond purchase programme