Gamechanger? Private equity is set to play a bigger role in Indian banks

Whichever way you look at it, a PE wave is set to enter banking

Private equity (PE) is set to play a bigger role in banks. Of 21 recommendations accepted by the Reserve Bank of India (RBI) out of 31 made by its Internal Working Group (IWG), its stance on non-promoter holdings in private ba­n­ks is seen with excitement, though it doesn’t refer to PEs explicitly.

On non-promoter holdings in these banks, the RBI said this will be capped at 10 per cent of the paid-up voting equity share capital in the case “of natural persons and non-financial institutions and entities”; and “at 15 per cent for all categories of financial institutions, entities, supranational