RBI Governor Sanjay Malhotra has hinted at allowing foreign banks to own up to 26% stake in Indian banks.
He said it's logical, especially since foreign entities can already fully own their own Indian banking su
bsidiaries.
Interest rate cuts since February have shown good transmission to new and existing loans.
A total of 50 basis points were cut between February and May, and another 50 bps in June.
The repo rate now stands at 5.5%, with the policy stance shifted to neutral.
Malhotra stressed the RBI would stay data-driven and flexible on future rate
decisions.
Japan’s SMBC may soon acquire a 20% stake in Yes Bank, pending approvals.
However, the RBI remains cautious on allowing industrial conglomerates to
run banks due to conflict of interest.