Will India's banking system go from being state-dominated to tycoon-led?

From the conditional nature of recommendation by RBI on ownership of private-sector banks, it doesn't appear that the regulator will soon reverse its policy of keeping conglomerates away from banking

Is India opening the door for big businesses to take over its banking industry? 
 

A working group set up by the Reserve Bank, the regulator, has suggestions for what to do with ownership of private-sector banks. Large industrial houses may be permitted to own controlling stakes, it says, but only after strengthening regulation and supervision to deal with the problem of “connected lending” — basically diverting depositors’ funds to their other businesses. 

From the conditional nature of the recommendation, it doesn’t appear that the regulator will soon reverse its policy of keeping conglomerates away from banking. But the report could pave