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Bank and NBFC stocks seen cheering RBI's proposals on widening ownership

While questions remain, RBI panel's recommendations, if implemented, could result in structural changes for the sector

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HDFC Bank and IndusInd Bank are the two prominent promoter-led banks, of which, promoters of IndusInd Bank have already placed a request to the RBI to increase their stake in the bank

Hamsini Karthik Mumbai

4 min read Last Updated : Nov 23 2020 | 12:03 AM IST

The report of the Reserve Bank of India (RBI) constituted Internal Working Group (IWG), reviewing extant ownership guidelines and corporate structure for Indian private sector banks, was a weekend bonanza for the Indian financial services firms.

Whether it was its recommendation to accommodate industrial houses in the banking sector, or the proposal to once again allow promoters of banks to hold up to 26 per cent stake or non-promoter investors to take upto 15 per cent stake, these are deep-rooted structural changes proposed by the IWG.

Suresh Ganapathy of Macquarie Capital terms these as bold recommendations, though he is extremely

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