The regulator had earlier asked these banks to submit a road map and give a time frame for paring promoters' shareholding to 10 per cent.
Sources familiar with the developments said the clearance came a few days earlier. While the details of the revised structure were not known, the sources said it would remain an all-stock deal.
Prompted by the Reserve Bank of India's increase in the key rate, the repo, banks have raised interest rates by 325-350 basis points.
Third-party sales force in financial sector dying slow death.
This is being done for two reasons: to avoid conflict of interest and bring in transparency in the functioning of the banking regulator.
RBI last year initiated the process for issuing fresh licences by publishing a discussion paper inviting comments from the public.
Banks and housing finance companies (HFCs) are trying to figure out their exposure to real estate projects in Noida Extension, which have come under cloud after courts cancelled land acquisition in several villages by Greater Noida authorities.
After rising for more than a year, short-term interest rates have started falling since the beginning of the month, thanks to improved liquidity.
Companies say the viability of 13,000 megawatts worth of projects, which have fixed power sale tariffs, hinge on the government decision.
According to recent finance ministry data that captures the performance of public sector banks, instances of home loan defaults contributing to gross non-performing assets was the highest in the category of loans up to Rs 200,000.
State Bank of India (SBI) has put on the backburner its plan to acquire a stake in Tata Motors Finance, following the Reserve Bank of India's (RBI's) objection.
According to RBI data, bank lending to commercial real estate registered 20 per cent growth in the year ended May 30 as compared to 1.2 per cent in the previous year.
RBI feels allowing foreign companies into this business may affect financial stability.
It is clear now that our policy to treat FCCBs as debt upfront turned out to be the right approach.
RBI slams public sector banks for the strange phenomenon of profits dipping when a new chairman takes over.
Khan would replace Shyamala Gopinath who retires on June 20, after a seven-year stint as deputy governor.
Insiders say some issues that demand immediate attention include improving asset quality and conservation of capital.
The Financial Stability and Development Council had earlier mandated RBI and the Securities and Exchange Board of India to undertake a review of the existing practices followed by banks and brokerage houses in offering wealth management services.
Bankers' committee suggests banks lend to meritorious students without collateral.
Sharp increase is a major departure from those during former chairman O P Bhatt's regime.
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