Private sector banks are set to get some relief from the Reserve Bank of India (RBI) on promoters' stake.
But, the central bank is now in favour of increasing that limit to 15 per cent, according to sources in the RBI. The move comes after the draft guidelines for new banking licences proposed that promoters of new banks float a non-operative holding company (NOHC), which would hold 40 per cent of the paid-up capital of the bank for an initial period of five years.
It will then have to reduce its stake in the bank to 20 per cent within 10 years and 15 per cent within 12 years from the date of licensing.
"The plan to allow existing bank promoters to hold 15 per cent stake will ensure a level playing field for all the players," a top official of a private sector bank, who did not wish to be named, said.
This will offer some comfort to private lenders such as Development Credit Bank (DCB), IndusInd Bank, Kotak Mahindra Bank and YES Bank, where
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