New banking licences: Bimal Jalan panel submits report to RBI

The committee on new bank licences has submitted its recommendations to the Reserve Bank of India (RBI) after scrutinising the applications.

The four-member committee headed by former RBI Governor Jalan submitted its report after meeting for the last time on November 1.

There are 25 applicants. State-run non-banking financial companies (NBFCs) like LIC Housing Finance and IDFC, Anil Ambani promoted Reliance Capital and Bajaj Finance are some of the prominent firms in the race.

Muthoot Finance, Religare Enterprises, L&T Finance Holdings and India Bulls Housing Finance are among the other companies who have applied for licences.

RBI had constituted the Jalan committee to examine the criteria, business plans, corporate governance practices of applicants.

Tata Sons, the holding company of the Tata group, withdrew its application in November last year.

Mahindra & Mahindra Financial Services decided against applying for a banking licence, while Value Industries, a unit of Videocon Industries, withdrew its application.

Kotak Mahindra Bank and YES Bank were the last ones to have got the licences in 2003-04.