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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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Akshay Kumar wishes director Priyadarshan on birthday with Bhooth Bangla BTS pic: ‘Surrounded by ghosts…

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3 weeks ago

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January 30, 2025

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Akshay Kumar wishes director Priyadarshan on birthday with Bhooth Bangla BTS pic: ‘Surrounded by ghosts…

Akshay Kumar and Priyadarshan, the acclaimed Indian director, celebrated their 68th birthday on Instagram. Kumar, who has worked with Priyadarshan on several cult comedies of the early 2000s, wished him a happy birthday and called him a mentor. The duo is now back together for their upcoming horror-comedy, Bhooth Bangla.

The first poster of the movie has been released, and it is expected to hit theaters in 2025. Akshay Kumar wore a black fedora and a green jacket, layered over a black tee, and fans have expressed their excitement for their new movie.

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The duo’s dynamic and deep bonding have been praised by fans, who have expressed high anticipation for their new movie. The first poster of Bhooth Bangla has already been released, and the movie is expected to hit theaters in 2025.

Akshay Kumar, the versatile Bollywood actor, recently celebrated director Priyadarshan’s birthday by sharing a behind-the-scenes (BTS) photograph from their upcoming film, “Bhooth Bangla.” In the image, Akshay humorously captioned, “Surrounded by ghosts…” The photo features Akshay alongside Priyadarshan and co-actor Paresh Rawal, all dressed in traditional attire, with a black cat perched on Akshay’s shoulder, adding a whimsical touch to the scene.

Reunion After 14 Years

This collaboration marks a significant reunion between Akshay Kumar and Priyadarshan, who last worked together on the film “Bhool Bhulaiyaa” in 2007. Their partnership has been celebrated in the past for delivering successful comedies like “Hera Pheri” and “Garam Masala.” Fans have eagerly anticipated their return to the big screen together, and “Bhooth Bangla” promises to be a delightful addition to their repertoire.

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About ‘Bhooth Bangla’

“Bhooth Bangla” is a horror-comedy that blends elements of suspense with humor, a genre in which both Akshay Kumar and Priyadarshan have excelled. The film is produced by Balaji Telefilms Ltd in association with Cape of Good Films. The motion poster released earlier this year features Akshay Kumar in a suit, with a cat on his shoulder, licking milk slyly, setting the tone for the film’s intriguing and humorous premise.

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Anticipation and Fan Reactions

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The BTS photo shared by Akshay Kumar has generated excitement among fans, who are eager to see the trio back together on screen. The playful caption and the presence of the black cat suggest that “Bhooth Bangla” will offer a mix of thrills and laughs, staying true to the successful formula of their previous collaborations.

As the release date for “Bhooth Bangla be a significant highlight in the upcoming entertainment lineup. The reunion of Akshay Kumar, Priyadarshan, and Paresh Rawal, combined with the intriguing premise and the playful BTS moments, has set high expectations among audiences. Fans can look forward to a cinematic experience that promises both chills and chuckles.

For a visual glimpse into the making of “Bhooth Bangla,” you can watch the following video Akshay Kumar expressed his gratitude as they once again united for their upcoming movie Bhooth Bangla. This marks a new chapter in their long-standing collaboration since the 2000s. He shared a picture from behind the scenes of their new movie, where it seems like they are laughing about something.

Akshay wrote,”Happy Birthday, Priyan Sir! What better way to celebrate than by spending the day on a haunted set, surrounded by ghosts…both real and unpaid extras? Thank you for being a mentor, and the only person who can make chaos look like a masterpiece. May your day be filled with fewer retakes. Wishing you a fantastic year ahead!”

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