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Last Updated : Aug 30, 2011 11:32 AM IST | Source: CNBC-TV18

New bank license guidelines: Who qualifies & who lucks out?

Uday Phadke of Mahindra & Mahindra and N Sivaraman of Larsen & Toubro talk about the impact it will have on their respective companies while Abizer Diwanji of KPMG gives his perspective on this development.

The much awaited draft rules from the Reserve Bank of India (RBI) that will govern the issue of new bank licences is out. Most of the rules like the minimum capital requirement of Rs 500 crore are along expected lines. But there were some shockers as well. No group of a company with more than 10% of revenues coming from broking or real estate will be eligible.

What's worse, the central bank says promoter groups who want to set up banks must have diversified ownership, professional management, adequate corporate governance and a 10-year successful track record. This, while excluding some young aspirants also makes the entire choice discretionary.

RBI releases draft rules for bank licences for corporates

Uday Phadke, President Financial Services, Mahindra & Mahindra and N Sivaraman, VP

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First Published on Aug 29, 2011 08:50 pm