 "RBI")
With assets under management (AUM) of Rs 47,000 crore and a liquidity comfort of 25 per cent tier-1 capital adequacy, the Reserve Bank of India’s (RBI’s) decision to reject Muthoot Finance’s application to buy IDBI Bank’s asset management company (AMC) for Rs 250 crore came as a surprise.
Lack of consonance with the activity of operating a non-banking financial company (NBFC) seems to be the reason behind the decision. For a lender diversified into segments such as microfinance and affordable housing, it is a natural aspiration to look beyond the usual streams of lending business. When larger peers such as HDFC
