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Bank stake sales in insurance, mutual fund subsidiaries hit a wall

Lenders await RBI norms on holdco structure; guidelines are likely to be finalised by year end

RBI governor is prodding banks to reduce lending rates

Even as private banks have the appetite to acquire stakes of public sector banks in insurance or mutual fund subsidiaries, there is no progress in the matter as they await clarity on holding company (holdco) structure norms from the regulator.  Sources say given the complexity involved in the process of creating a holding company, which will ultimately be the parent company of banking and other businesses, banks are going slow in acquiring stakes in insurance arms or mutual funds of other lenders.  “The Reserve Bank of India (RBI) has held initial ...