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Calling the move of the apex bank a win-win situation for all, PNB Executive Director SR Bansal said, with the new set of guidelines for the banking operation licence will lead to more competitions resulting in better services for the customers.
Asked on the new set of rules paving the way for real estate players and brokerage firms to apply for banking license, Bansal, who is in the race for the post of Chairman cum Managing Director of PNB, said, the decision must have been taken after due discussions.
RBI has set the last date of applications till July 1. No specific industry was barred from applying, although draft rules issued in August 2011 had barred real estate companies and brokerage firms.
The minimum capital required by applicants for licence is Rs 500 crore, and foreign shareholding in the new banks will be capped at 49 per cent for the first five years. The new banks should be set up under a non-operative financial holding company (NOFHC), the RBI said.
The new guidelines were issued by the apex bank nine years after it issued the last round of licences. RBI had issued licences to 10 private players in 1993-94 followed by two more banks in 2003-2004- namely Kotak Mahindra Bank and Yes Bank. Bansal inaugurated 116th branch of PNB in Odisha at Kantapada and 5th PNB Pragati branch in Bhubaneswar on Friday during his visit here. He said, about 21 more branches will be opened in Odisha Circle and 7 more branches to be upgraded as PNB Pragati branch before the end of this fiscal.
In Odisha , the PSU bank has presence in 29 out of 30 districts with a total business of Rs 6,258 crore (as on December,2012). There are also plans to open branches in the left out naxal infested Malakangiri district in the next fiscal.
The Pragati branches provide hustle-free banking by installing ATMs, deposit machines, cheque deposit and passbook printing facility at one place.
