RBI’s Goodbye to Banking Matrimony

........“There are regulatory challenges, as foreign banks would want to control more than 10% of the bank. Also, a merger will not be possible unless these foreign banks set up a subsidiary. We do not know whether the rules will be for distressed banks only.” The likely caveat from the RBI may be that those foreign banks have to set up a subsidiary in India and have to list their shares on the stock exchanges. And that’s what former Governor Duvvuri Subbarao had proposed. But barring a few such as DBS’ chief Piyush Gupta, most foreign banks are averse to doing so..........

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