At present foreign holding is capped at 74% and the industry leaders ICICI Bank and HDFC Bank have the maximum exposure to foreign capital. Photo: AFPMumbai: Private sector banks are split on the speculation that government may remove the cap on foreign holding in them, with some welcoming it while others clearly not enthused by the proposed reform measure. Hence, it is not appropriate to have 100% foreign owned banks,” he argued. According to media reports, the Narendra Modi government is reportedly planning to allow 100% foreign direct investment in the private sector banks. “We’ve seen a tremendous contraction of foreign banks of late,” he said, adding their roles are now restricted to helping in exercises like equity and debt raising and also external commercial borrowings.

Source: Mint January 21, 2018 09:22 UTC