The Reserve Bank yesterday granted "in-principle" Banking License approvals to two institutions IDFC and micro-finance unit Bandhan Financial Services. It may also consider the application of India Post separately.
Its a significant move as its the first time since 2004 (Yes Bank) that new banking licences have been issued.
The interesting point is that the other 20 + significant names in the fray havent got the nod !
They include IFCI, Reliance Capital, L&T Finance, LIC Housing Finance, Aditya Birla Nuvo, Bajaj Finserve, Muthoot Finance, Religare Enterprises etc.
The RBI seems to have gone ahead only with highest quality players.
I have a gut feel that the better among the others will be considered in consultations with the new government.
I hope , only the best among these with the highest quality and integrity get the go ahead , though all these players have significant financial experience & exposure.
I have written earlier too that banking license for India Post will be the real game changer to increase banking penetration among masses, we need it asap !!
Footnote - I am sure many wise guys would have lost significant amounts betting on potential winners - RBI had the last laugh !!
