The Federation of Indian Chambers of Commerce and Industry (Ficci) and the Associated Chambers of Commerce and Industry of India (Assocham) have called for allowing industrial houses to set up banks. This is on the lines of the stand of another business lobby, the Confederation of Indian Industry.
Ashwin Dani of Asian Paints, who led a Ficci delegation to meet the Reserve Bank of India officials on Friday, said the body “strongly supports” allowing industrial houses to set up banks, albeit those with a good track record in the financial services business of at least 10 years.
On allowing groups with interests in real estate, Ficci said an applicant’s property exposure should not be more than 10 per cent of the group’s total assets. Also, the ownership and control of the property arm should be separate from the financial services business, it said.
Assocham said big business houses with real estate in their portfolio should not be barred from applying for bank licences.
Ficci emphasised the need for a minimum capital of Rs 1,000 crore to ensure entry of only serious and long-term players. Also, the upfront ownership by the promoter be maintained at a minimum of 40 per cent upon start of banking operations, it said.
