 "Reserve Bank of India, RBI")
The arc of the Reserve Bank of India’s (RBI’s) policy on bank ownership has changed over time. Just over two decades ago, the regulator attached primacy to skin in the game. The thinking thereafter evolved, and the central bank saw merit in diversified ownership with the “promoter shareholders” having limited or no ability to influence the board. The recent approvals to Tokyo-headquartered SMBC to acquire a 24 per cent stake in Yes Bank and to Dubai-based NDB to acquire around 60 per cent in RBL Bank suggest that the RBI now favours ownership by regulated institutions as its preferred mode.
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