NBFCs weigh benefits of being banks
Synopsis
A Reserve Bank of India working group, set up for reviewing private bank ownership, said that well run large NBFCs with minimum asset size of Rs 50,000 crore, including those which are owned by a corporate house, may be considered for conversion into banks.
KOLKATA: Initial euphoria about non-banking finance companies (NBFCs) converting into banks is slowly giving way to questions whether it would be worth their while when it is still a struggle for many existing banks to mobilise low cost deposits.The cost of conversion would also likely offset the benefit they get from low cost deposits, captains of the industry said. NBFCs enjoy the regulation-light structure and can undertake activities that
To Read the Full Story, Become an ET Prime Member
Sign in to read the full article
You’ve got this Prime Story as a Free Gift
Access the exclusive Economic Times stories, Editorial and Expert opinion
Why ?
Sharp Insight-rich, Indepth stories across 20+ sectors
Access the exclusive Economic Times stories, Editorial and Expert opinion
Clean experience with
Minimal AdsComment & Engage with ET Prime community Exclusive invites to Virtual Events with Industry Leaders A trusted team of Journalists & Analysts who can best filter signal from noise
