Japan has formally approached the finance ministry and the banking regulator, seeking relaxation in the guidelines for its banks operating in India

Relax norms for foreign banks in India, says Japan

Business Standard

With fund flow from banks to the non-banking finance companies drying up, the later has requested the banking regulator to create a separate class of NBFC for those who have bulk of their exposure to the priority sector so that bank finance to this sector could be clasified as priority sector lending

NBFCs want priority sector tag to attract bank funds

At the time when overall credit and deposit seems to missing the projected level by Reserve Bank of India (RBI) it has been observed that the loan growth and deposit growth in the private sector banks is satisfactory while the poor performance by their public sector peers is dragging the  industry growth on year to date (Y-T-D) basis. Public sector banks controls about 70% of the country's banking industry

Business growth: private banks outpace public sector peers

Non-banking finance companies (NBFCs) are seen as key contenders to receive the regulator's green signal to foray in the banking space.However, some of the likely applicants face a challenge in meeting the criteria to convert themselves into a bank.In its final guidelines, the central bank has clearly said such NBFCs will not be permitted any activity a bank cannot do. If an NBFC converts, any activity a bank is not allowed to undertake should be divested, the Reserve Bank has said. The minimum net worth for an NBFC converting to a bank is Rs 500 crore.The south-based Shriram Group, among the top contenders for a banking foray, has two NBFCs in its fold. "The guidelines don't seem different from the draft ones. We will have to discuss it with RBI," said G S Sundararajan, group director. "We need to understand the implications in greater detail and then take a call."There are certain challenges before NBFCs convert. Most have a s

Conversion challenge before NBFCs

BS Reporter

The Reserve Bank of India (RBI) on Friday said it could allow corporate groups, non-banking financial companies (NBFCs) and public sector entities to set up a bank only through a wholly-owned non-operative financial holding company (NOFHC). The NOFHC, registered as an NBFC, will hold the bank and other financial services entities of the promoter group. "The objective is that the holding company should ring-fence the regulated financial services entities of the group, including the bank, from other activities of the group," RBI said.HOLDING COMPANY STRUCTUREOnly non-financial services companies and individuals belonging to the promoter group will be allowed to hold shares in the NOFHC.These shares cannot be transferred to entities outside the promoter group.An individual belonging to the promoter group, along with his relatives and entities owned by him, can hold up to 10 per cent of the total voting equity shares of the NOFHC.

Holding company to ring-fence bank

Religare, IIFL and Edelweiss are said to be interested to venture into banking

High asset price volatility clause may be a hindrance

Pure-play non-banking financial companies best placed to grab new bank licences

Realtors, brokerages may face hurdles

Urges FinMin for introduction of new schemes for allowing FDI in engineering and high-tech goods manufacturing

Exim Bank seeks sops for manufacturing sector

Public sector lender, Andhra Bank, is revising the benchmark prime lending rate (BPLR) downwards by 25 basis points (bps) from the current 14.75% to 14.50% with effect from March 1, 2013.

Andhra Bank to cut base rate to 14.50%

The credit card segment in India witnessed growth in FY 2012-13 after a four year period of sluggishness

Credit card base to reach 19 mn by FY13 end

Public sector banks plan to open more than 60,000 ATMs in rural areas during the next two years, Rajya Sabha was told today.

More than 60,000 ATMs to be opened in rural areas in 2 yrs: govt

Press Trust of India

The Reserve Bank of India (RBI) has asked banks to investigate funding provided by them in the last three years for purchase of shares in initial public offers (IPOs).

RBI asks banks to probe three years IPO funding

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