Corporate-promoted NBFCs can have 15% stake in banks, with increase in cap

Banking experts said the move to increase non-promoter shareholding would help lenders with greater access to capital

Corporate houses, which are not allowed to own a bank, can now pick up 15 per cent stake in commercial banks through their non-banking financial companies (NBFCs).

This is because the Reserve Bank of India (RBI) has allowed non-promoters to hold up to 15 per cent in private sector banks, following the recommendation of an internal working group (IWG) that was set up to review the existing guidelines on ownership and corporate structure for these entities. Voting rights, however, are likely to be capped at 10 per cent as is the case with other investors.

The IWG had recommended that all types