Year Round Up: Banks Chase Borrowers In 2014 To Recover Loans
Keeping the huge capital requirement in the mind, the Union Cabinet earlier this month, allowed public sector banks to raise up to Rs 1.60 lakh crore from markets by diluting government holding to 52 per cent in phases so as to meet Basel III capital adequacy norms.
The Cabinet has also asked the PSBs to broadbase retail shareholding while going in for the fund raising.
Out of 27 PSBs, Government of India controls 22 through majority holding. In the remaining 5 banks, state-owned SBI holds majority stake.
Private sector, which has about 25 per cent market share, did see some important development including announcement of merger of ING Vysya Bank with Kotak Mahindra Bank.
This is the country's first ever amalgamation of a profit earning entity post the global financial meltdown in 2008.
This was all-stock deal worth Rs 15,000 crore.
RBI also selected two new entities - IDFC and Bandhan - for banking licenses, while the new year may see grant two of licences in two new niche categories - payment banks and small finance banks.
Besides, the RBI fixed 70 years as retirement age MD & CEO and other Whole Time Director (WTD) in a private bank as stipulated in the new Companies Act.
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