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India needs big promoter-led banks, and the RBI needs sharp sleuths to oversee them

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4 years ago

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India needs big promoter-led banks, and the RBI needs sharp sleuths to oversee them

In a span of a week, the Reserve Bank of India (RBI) has not only allowed a foreign bank to buy a private sector bank, and thereby gain more footprint in India but is now also thinking of opening the gates of banking to big conglomerates.India’s banking regulator seems to have tuned into American singer Bob Dylan’s “the times they are a-changing” yet again.

In a span of a week, the Reserve Bank of India (RBI) has not only allowed a foreign bank to buy a private sector bank, and thereby gain more footprint in India but is now also thinking of opening the gates of banking to big conglomerates. What’s more is that big non-banking finance companies (NBFC) should turn themselves into mainstream banks.These are two of the many recommendations made by an internal working group. To be sure, these recommendations have been made in the past too. But the RBI has so far avoided being too lenient on giving out banking licences. In the last round of universal bank licensing six years ago, only two candidates made the cut and none of them were big conglomerates.

However, analysts feel this time the RBI may indeed warm up to the idea. The rationale is simple. The Indian economy needs big banks promoted by deep pocketed entities that can easily finance the needs of the economy. “For a capital starved banking sector, the only way is to tap domestic promoters to grow. I think some of the recommendations are path breaking if adopted,” said Abizer Diwanji, partner and national leader- financial services at E&Y. Diwanji believes that the RBI may first allow big NBFCs to turn them into banks. Such lenders already have the track record needed. Some of them also have robust processes that rival that of banks. “We need large scale lending in India and NBFCs turning into banks will help this,” said Diwanji. Analysts believe that NBFC shares may gain although these are just recommendations and not rules yet.While RBI may be softer on NBFCs, it may be tough to convince for giving licences to big conglomerates. To be sure, the working group has recommended that licences be given only once the Banking Regulation Act 1949 is suitably amended. This may take time. Also, the complex structure of large conglomerates make it difficult for the RBI to oversee them. “Big corporates getting licences may not be soon because the RBI will want to first ensure governance structures and supervisory rigour,” said Diwanji.

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This rigour has come under question. While the RBI has tightened regulations enough to avoid nasty surprises, its supervisors have not been able to fish out dodgy transactions. Within two years, two large NBFCs and three banks have gone under. In the end, the regulator has been blamed for either waiting too long to rescue a bank or completely missing the problem. But the RBI has begun to plug the holes. In the past months, it has built a separate cadre of supervisors and also beefed up training.

Big conglomerates and NBFCs may find themselves closer to a bank licence than before. But the RBI won’t give in until it has all the shields in place.

Also Read: BIGG BOSS 14: KAMYA PUNJABI COMPARES KAVITA KAUSHIK TO SIDHARTH SHUKLA, CALLS PAVITRA’S OUTBURST ‘JOKE OF THE SEASON’

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Siddharth Malhotra carries pregnant wife Kiara Advani’s bag in unseen pic from New York ahead of Met Gala 2025

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4 days ago

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May 6, 2025

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Siddharth Malhotra carries pregnant wife Kiara Advani’s bag in unseen pic from New York ahead of Met Gala 2025

One of Bollywood actor Kiara Advani’s most exciting and memorable years will be 2025. Kiara and her famous husband, Sidharth Malhotra, revealed their first child’s impending arrival in February of this year. The couple and soon-to-be parents were seen outside a hospital two weeks ago, and Kiara was the first to show off her gorgeous baby bulge and pregnancy glow.

To top it all off, Kiara will soon be attending her first Met Gala! She and Siddharth were photographed outside their New York hotel only last night. A fan posted this photo of Kiara Advani and Siddharth Malhotra on social media when they arrived at their New York hotel. Now, it has In a heartwarming display of affection, Bollywood actor Sidharth Malhotra.

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Recently spotted in New York City carrying his pregnant wife Kiara Advani’s handbag, ahead of her much-anticipated Met Gala 2025 debut. The candid moment, captured outside their hotel, quickly went viral on social media, with fans praising Siddharth’s supportive gesture

Kiara, expecting her first child with Siddharth, looked radiant in an oversized jacket layered over a midi dress, subtly showcasing her baby bump. Siddharth, dressed casually in a button-down shirt, followed closely behind, holding her white handbag—a simple yet touching act that resonated with fans online. The photo, shared on Reddit, garnered comments like.

The couple, who tied the knot in February 2023, announced their pregnancy earlier this year. Kiara’s appearance at the Met Gala marks a significant milestone, as she prepares to walk the red carpet in a custom Gaurav Gupta ensemble. While it’s yet to be confirmed if Siddharth will accompany her on the red carpet, his presence in New York underscores his unwavering.

Fans eagerly await Kiara’s Met Gala debut, anticipating a blend of Bollywood glamour and appearance at the Met Gala marks a significant milestone to walk the red He’s holding her bag they’re so highlighting the couple’s endearing dynamic international fashion flair. With Siddharth by her side, the couple continues to capture hearts, embodying love and partnership both on and off the screen support during this special time.

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In a heartwarming moment captured in New York City, Bollywood actor Siddharth Malhotra was seen carrying his pregnant wife Kiara Advani’s handbag as they entered their hotel ahead of the Met Gala 2025. The candid photograph, shared by a fan on Reddit, quickly went viral, with fans praising Siddharth’s supportive gesture Kiara, expecting her first child Siddharth.

Looked radiant in an oversized jacket layered over a midi dress, subtly showcasing her baby bump. Siddharth, dressed casually in a button-down shirt, followed closely behind, holding her white handbag—a simple yet touching act that resonated with fans online The couple, who tied the knot in February 2023, announced their pregnancy earlier this year. Kiara’s appearanc.

At the Met Gala marks a significant milestone, as she prepares to walk the red carpet in a custom Gaurav Gupta ensemble. While it’s yet to be confirmed if Siddharth will accompany her on the red carpet, his presence in New York underscores his unwavering support during this special time Fans eagerly await Kiara’s Met Gala debut, anticipating a blend of Bollywood.

Glamour and international fashion flair. With Siddharth by her side, the couple continues to capture hearts, embodying love and partnership both on and off the screen Kiara, expecting her first child with, looked radiant in an oversized jacket layered over a midi dress, subtly showcasing her baby bump. , dressed casually in a button-down shirt, followed Kiara’s carpet in a custom Gaurav Gupta ensemble.

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