Giving banking licence to conglomerates, allowing non-banking financial companies (NBFCs) to convert to banks, raising promoter stake in private sector banks to 26 percent are some of the key recommendation of an internal working group of Reserve Bank of India (RBI), which was appointed to study bank promoter rules. CS Ghosh, MD and CEO, Bandhan Bank shared his views on the issue.

“When an NBFC is converting into the bank, it is not very easy, it is complex, cost will increase,” Ghosh said in an interview with CNBC-TV18.

On promoter stake dilution, he said, “This is a good change that has been suggested by the internal committee. They have given 15 years of time for dilution. There is no need of interim period for dilution.”

According to him, the bank that has banking services like insurance and mutual fund will not like to go for the collapse of a three layer structure of holding company. “As Bandhan Bank has plans on mutual fund and insurance business, we will not be going to collapse (the holding company structure) though it is good for some others,” he said.

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(Edited by : Santosh Nair)

First Published:Nov 23, 2020 11:34 AM IST