The restrictions do not mean that the bank's licence has been cancelled but the restrictions will continue till its financial position improves.
The Intelligence Bureau (IB) is keeping a close vigil on as many as 500 bank branches across the country, following reports of rampant money laundering with the connivance of bank officials, reports CNBC-TV18, quoting sources.
But there is no reason why Jalan has to be so careful. He could well just say that all these companies are financially sound and now RBI should take the call on whom it should give its licence to.
Nischint Chawathe, NBFC Analyst, Kotak is betting on IDFC, which is trading below book. He says over the next three years even if the finance company gets converted into a bank and sees pressures on Return on equity (RoE), it would still be a good buy.
India's Q2 gross domestic product (GDP) failed to provide any fireworks as the economy grew at 4.8 percent- slightly better than the 4.4 percent growth in the first quarter
Sources say that the group is looking at investing upto Rs 700-800 crore for its banking arm and is firming up details including professionals to be hired.
The standing committee on finance wants minimum capital to be doubled to Rs 1000 Cr; terms existing fit & proper criteria as subjective.
From Tata, Birla and Ambani to ambitious financial services entrepreneurs, everyone sees money in a banking licence. But cut to the core, and what you find is a clear play on the India growth story, and not much else
The business of banking is really sticky and the sector clearly needs competition
Rajiv Takru, secretary, Financial Services, Government of India says the problem of non-availability of bank accounts to a huge chunk of population will be combated by the fresh banking licences.
The largest pure-play gold mortgage player Muthoot Finance, which has applied for banking licence, has said it can easily launch commercial lending business with as many as 2,000 branches.
The news of issuance of banking licenses to corporate and non-bank financial entities evoked mixed response. Let me analyse the need for more banks from the perspective of different stake holders, says Moses Harding, Head - ALCO and Economic & Market Research, IndusInd Bank.
The Reserve Bank of India will not grant new bank licences to all eligible companies, which have applied for the same, said the central bank governor Duvvuri Subbarao on Thursday in Chennai. A group of 26 companies had applied for new banking licence from both public and private sectors. The last date of application was on July 1.
Chidambaram said that he does not have a fix number in mind. "It all depends upon how many applicants are eligible applicants. The fact that somebody applies doesn't mean he is an eligible applicant," he told PTI in an interview.
Shriram Capital is seen as a strong contender to win a licence. Corporate heavyweights, from the Birla and Bajaj groups to Anil Ambani's Reliance Capital are among several companies aspiring to get into mainstream banking
CNBC-TV18's Gopika Gopakumar reports that companies that have applyed for a banking licence ended Monday on a positive note.
Kotak AMC's Alroy Lobo expects Indian market to show an improving trend going forward. He believes liquidity will return to India owing to its strong market fundamentals
CNBC-TV18 reports that Aditya Birla Nuvo has entered the race for receiveing a banking licence after its board approved the decision to submit an application to RBI.
CNBC-TV18 reports that Religare Enterprises has roped in US-based Customers Bancorp to partner in its banking foray by selling a 6.1-percent stake to Bancorp.
Reliance Capital plans to apply for bank licence in partnership with Japan's Sumitomo Mitsui Trust Bank and Nippon Life Insurance of Japan.
Videocon will have investors coming in from different fields. Venugopal Dhoot says their partnership with Liberty inspired them to apply for the license.
Religare, a leading non-banking financial services company, is among the major contenders for new banking licences, for which the applicants are required to submit their applications to the Reserve Bank by July 1.
Here is what made headlines today:
The unchanged CRR, SLR norms, which are stringently set by RBI, will weed out non-serious players in the race to get new bank licence.
The RBI on Monday clarified more than 400 queries it had received on the subject of new bank licences. Chennai-based Shriram group is one of the top contenders for a new banking licence. GS Sundararajan, Group Director, Shriram Group told CNBC-TV18 that it needs to modify structure for bank licence application.