Govt revives IPO plans for RRBs, asks sponsor banks to identify candidates

The Union government has asked sponsor banks to identify regional rural banks (RRBs) that can be listed on the exchanges based on defined criteria, reviving an earlier plan to come up with initial public offering (IPO) of such lenders.

All RRBs are presently unlisted. Sponsor banks — that hold about 35 per cent in RRBs — have been asked to handhold regional lenders at all stages from identification of merchant bankers to the conclusion of IPO. While the Centre holds 50 per cent in RRBs, state governments own the remaining 15 per cent.

The exercise to nudge RRBs to come