IDFC and Bandhan Financial Services emerged successful out of 25 contenders for universal bank licences issued by the RBI in April last year. These entities have already started their operations.
The investment proposals were approved following the recommendation for the same by the Foreign Investment Promotion Board (FIPB), headed by Finance Secretary Rajiv Mehrishi.
IDFC Ltd said on Friday the Reserve Bank of India had granted banking licence to the financial company, making it the second lender to enter the banking sector after more than a decade.
The investment applications also include a host of proposals related to pharmaceutical sector, said the agenda of the 221st meeting of the Foreign Investment Promotion Board (FIPB) that will take place on July 13.
Micro-finance institution Bandhan Financial Services, which got the final license from Reserve Bank of India to start universal banking, would formally start operations as a banker from August 23.
The proposal of microfinance group Bandhan Financial Services and Kerala-based Catholic Syrian Bank will also be considered in FIPB meeting.
The entity will be named as Bandhan Bank. "We will launch the bank in Kolkata, where Bandhan is headquartered, on August 23," its Chairman and Managing Director Chandra Shekhar Ghosh told reporters here today.
Micro finance institution (MFI) Bandhan has got fresh equity infusion of Rs 1,020 crore with GIC Sovereign Fund of Singapore becoming a new shareholder.
RBI approves scheme of arrangement between IDFC and IDFC Bank
These companies were nominated on the strength of their ability to become future global leaders and represent a broad spectrum of sectors, including banking, retail, information technology, chemicals and energy, WEF said in a news release.
IT services is the largest overall spending category at almost Rs 15,500 crore in 2014 (33 percent of the entire enterprise IT market) which confirms the interest of the banking industry for IT services which is becoming a leading industry in the country, says Gartner.
The panel will make its recommendations to the Governor and Deputy Governors, who will make the final proposals to the committee of the RBI central board.
The Reserve Bank is likely to complete initial scrutiny of 26 applications for new bank licences in a month, a senior RBI official said.
Soon after Raghuram Rajan took charge as the 23rd Governor of RBI, he had said that an external committee would be headed by former central bank Governor Bimal Jalan to screen the 26 applications for bank licences.
Value Industries was among the 26 applicants for a new banking licence in the private sector, for which the Reserve Bank had invited applications by July 1 this year.
RBI, the sources said, is currently screening the prima facie eligibility of the applicants including 'fit and proper' criteria and other relevant parameters. After the screening of the applications by RBI the names will be referred to the high level panel for scrutiny.
The Reserve Bank of India (RBI) received 26 applications from different institutions, which are in the fray to float banks. The last date of application for a new bank licence ended on Monday.