In its much-awaited draft guidelines with regard to new private banks released on Monday, the RBI said private groups or even entities with diversified ownership, sound credentials and a “successful track record" of 10 years would be permitted to apply for new banking licences. The central bank is considering issuing banking licences for the very first time since 2004.
The new banks can be set up only through the wholly owned, non-operative holding company, or NOHC, that will control the bank along with other financial service companies in the group, the RBI said. The NOHC, which is registered as a non-banking finance company with the RBI, will include all financial arms from the founding group.
“The minimum capital requirement will be Rs 500 crore and the aggregate foreign shareholding within the new bank shall not exceed 49% for the first 5 years after which it will likely be as per the extant policy, " the RBI said in a pr release.
Among the individual stocks, Bajaj Finserv is the largest gainer, up 9% at Rs 625 about the BSE. The stock has gained 25% in past two trading days through Rs 500 on Friday, August 26.
Srei Infrastructure Finance is up 7% from Rs 42. 30, followed by Mahindra and Mahindra Financial Services (up 5%) as well as Reliance Capital (up 4%).