No well-diversified industrial house, let alone family-run ones, are likely to figure among the new the bank licensees, according to people familiar with the discussions between the government and the Reserve Bank of India (RBI) in this regard.
They said the RBI might opt to tread cautiously and prefer financial conglomerates or entities with finance background, over large industrial houses, when it issues new bank licences. The first set of new licences- four or five- are set to go to entities like IDFC and L&T Finance, the sources said.
Last week, the finance minister P Chidambaram said the government would bring in the Banking Regulation Amendment Bill in the Winter session, which would empower the RBI to supersede the bank boards in the event of any wrongdoing.
The central bank had set this as a condition for issuing new bank licences, the final guidelines for which are expected to be issued soon.
Sources said the reluctance to give licences to large and diversified industrial groups comes in the backdrop of one or the other of the companies floated by them getting embroiled in the controversies like in allocation of coal, spectrum and other natural resources.
New banks are expected to foster financial inclusion in the country and make the sector more competitive. The minimum capital requirement for each bank is expected to be Rs 1,000 crore. The RBI last gave licences to 12 private sector banks in two phases since the financial sector was opened up in 1991.
The RBI issued the draft guidelines for bank licences in August 2011 and final norms now are expected to be unveiled soon.
