How many more new banks will get RBI’s nod?5 min read . Updated: 09 Nov 2015, 01:21 AM IST
Unless there is a dramatic improvement in the quality of outfits who would apply for licences, it is unlikely we will see another 20 banks in the next four years
Reserve Bank of India (RBI) deputy governor S.S. Mundra’s recent comment in Delhi that the central bank will give more licences to new banks has sparked off speculation on how many more banks India can have. Two universal banks—Bandhan Bank Ltd and IDFC Bank Ltd—have already started operations and 21 new ones in the form of payments banks and small finance banks will come into being in less than 18 months. This development has to be seen in the context of India offering 12 new bank licences in 68 years since Independence. Suddenly, the premium attached to a bank licence in India, known for financial repression, is going down. This will bring a smile to bank customers even as the investors are a worried lot.
Login to enjoy exclusive benefits!
- Unlocked premium articles
- Personalized news
- Market Watchlist
- Insightful Newsletters & more