Sunil Godhwani, Chairman, Religare told CNBC-TV18 that RBI has done a great job in putting these guidelines as there is no limit on broking and real estate companies as well.
The Reserve Bank of India (RBI) on Friday, issued the final guidelines for licensing of new private sector banks. Sunil Godhwani, chairman, Religare told CNBC-TV18 that RBI has done a great job in putting these guidelines as there is no limit on broking and real estate companies.
Godhwani also appreciates the fact that now the non-banking financial institutions (NBFCs) can go public in three years instead of two, so that the business reaches a level of maturity before going public.
Below is the verbatim transcript of Sunil Godhwani's interview on CNBC-TV18.
Q: It is positive, since there is no mention of any specific sectors being ruled out. What are your first thoughts from the top 14-15 conditions that the RBI has laid out?
A: First thought is pleasant. The RBI has done a great job in putting up the fine guidelines. They have opened it up to the entire sector. There is no limitation on broking companies, on real estate companies. The fit and proper eligibility that they have put in there is great in the sense that people who have financial experience, will be welcomed.
Also, the fact that you can go public in three years instead of two years is a welcome sign because it allows the business to reach a level of maturity before taking it public. So, everything that we are seeing is positive. We still have to reach the guidelines detail, get into the detailing of it and then come back with a larger opinion on that.
Q: People wanted promoter groups to be allowed to keep 25-26 percent. The RBI has made it 15 percent - better than the current 10 percent but it will not be as good as 26 percent. Do you think 15 percent would be a deterrent?
A: I don't think so. Any financial services company, even at Religare today, our board is largely independent. One is governance and the other one is shareholding. RBI clearly indicates that if any bank is not largely directed in any way controlled by a promoter group and is governed in a very dependent manner then it is a welcome and de-risking attitude that the RBI has taken. So, I don't think it is very positive from that contex.