A while back PFC,REC had spoken about acquiring banking licenses or atleast stakes in banks.
The motive was to reduce dependence on banks for funding state infrastructure projects and realization that one day like erstwhile DFIs their day will be over, and so prepare to transform like IDBI into a regular market player (I suppose).
However I think that ‘appointment of consultant’ to suggest entry strategy in banking may be gone off the radar for a long while.
Firstly because Licensing of New Banks seems to be focused on new licenses to ‘inclusive banking’ – so that the usurious MFI horror show (which has now ended) – can be replaced by a formal charitable bank. And clearly PFC,REC being infra focused cant be those, hence doubtful.
And Second, I think RBI has just opened a carry trade window for Infra Focussed PSU NBFCs, thus eliminating one of their pet concern on cheap funding.
So I’d hypothesis that no more banking acquisition for PFC, REC as they wanted earlier.
| |
4134
3846
945
4260
973
|
|
17649
42
1677
25526
3005
|
|
1369
459
3151
32715
140
|
|
24632
|
|
