SREI, Edelweiss to seek banking licences

PTI Updated - December 07, 2021 at 01:11 AM.

Joining the list of banking aspirants, financial services firms SREI Infrastructure Finance and Edelweiss Financial today said they will apply to RBI for seeking bank licences.

The board of SREI Infrastructure Finance at its meeting today, has decided to submit an application to the RBI for obtaining a banking licence, the company said in a filing on the BSE.

Shares of the Kolkata-based company closed at Rs 25.20, down by 1.37 per cent on the BSE.

Edelweiss Financial in a separate filing said, the board has approved proposal for making an application to the RBI for a banking licence.

Shares of Edelweiss Financial closed flat at Rs 30.10 on the BSE.

Meanwhile, another NBFC Mahindra Finance, today said it will not apply for bank licence as RBI guidelines are disadvantageous for large NBFCs.

Earlier this month, RBI while issuing clarification on new bank licence guidelines said, the entities getting licences to open new banks will be given 18 months to open branches against 12 months prescribed earlier, and promoters would have to transfer their holdings to the non-operative financial holding company (NOFHC) in a stipulated period.

The NOFHC envisages holding of the bank and other regulated financial services entities of the promoters under the NOFHC and prudential exposure norms for the regulated entities.

India has 26 public sector banks, 22 private sector banks and 56 regional rural banks.

Ten banks were licensed on the basis of guidelines issued in January 1993. The guidelines were revised in January 2001 based on the experience gained from the functioning of these banks, and fresh applications were invited.

Published on June 24, 2013 12:03