Business Daily from THE HINDU group of publications
Wednesday, Oct 31, 2007
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Wednesday, Oct 31, 2007 ePaper | Mobile/PDA Version |
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Money & Banking
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Restructuring Government - Financial Policy RBI guidelines on holding cos deferred to Nov-end Our Bureau Mumbai, Oct. 30 The Reserve Bank of India has postponed the date for issuing final guidelines on holding companies in banking groups, till the end of November.The bank had released a discussion paper on holding companies in banking groups and sought feedback, in August. RBI'S CONCERNS In the discussion paper, the RBI expressed concern about intermediate holding companies, which could have multiple layers. The central bank was in favour of a structure where the holding company is at the peak and the bank, insurance and asset management companies are its subsidiaries. ICICI Bank and State Bank of India had proposed to hive off their stakes in their insurance and mutual fund businesses to a holding company. ICICI Bank had already received commitments from investors to issue 5.9 per cent stake in its proposed subsidiary, ICICI Holdings, for a total amount of Rs 2,650 crore to private investors. The holding company was valued at Rs 44,600 crore. It had also received clearance from the FIPB. Sources said these commitments would expire after November 30 and would have to be renewed. "Although these investors are committed for the longterm it would have to be renewed after November 30. This may further boost valuations of the holding company," said sources.More Stories on : Restructuring | Financial Policy | RBI & Other Central Banks
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