'RBI must give bank licences to corporates with proven record'

07 Oct 2013

The Reserve Bank must issue new bank licenses to corporate houses with proven track records in order to achieve financial inclusion as public ...

The Reserve Bank must issue new bank licenses to corporate houses with proven track records in order to achieve financial inclusion as public sector banks alone will not be able to spread banking services to the entire country, PHD Chamber of Commmerce said today.

"Private banks' entry has only made banking sector more competitive ever since their operations came into being," PHD Chamber President Suman Jyoti Khaitan said.

Private banks have made state-owned banks more aggressive in product innovation and customer retention by offering better service quality, thereby making a strong case for interested corporate houses with established credentials to be issued new bank licences, he added.

A parliamentary panel last month opposed the new bank licences to corporate houses and voiced concerns over the discretionary power vested with RBI for applying 'fit and proper' criteria for deciding on applications.

The Parliamentary Standing Committee on Finance, headed by former finance minister and BJP leader Yashwant Sinha, expressed concerns that the "corporate wave" may harm the interest of banking sector in the country.

Tata group, India's biggest business group, and firms controlled by billionaires Anil Ambani and Kumar Mangalam Birla are among those which applied for bank licences.

Among public sector units, India Post and IFCI have submitted applications. Microfinance institutions such as Bandhan Financial Services and Janalakshmi Financial, too, have expressed their intention to set up banks.

Currently, the central bank is in the process of issuing new bank licences for which it has received applications from 26 public and private sector entities. The RBI is likely to issue the licences by January 2014.

The apex bank has already set up an external committee of financial sector experts, headed by former RBI Governor Bimal Jalan, to scrutinise the current applications.

In the past 20 years, the RBI has licensed 12 banks in the private sector in two phases. Ten banks were licensed on the basis of guidelines issued in January 1993.

The guidelines were revised in January 2001 based on the experience gained from the functioning of these banks and fresh applications were invited. Kotak Mahindra Bank and Yes Bank were the last two entities to get banking licences from the RBI in 2003-04.

BOIEU opposes new banking licence06 Oct 2013

Bank of India Employees Union (BOIEU) on Sunday opposed the Centre's decision to issue new banking licences. Odisha unit president of BOIEU ...

Bank of India Employees Union (BOIEU) on Sunday opposed the Centre's decision to issue new banking licences. Odisha unit president of BOIEU Sachinanda Nanda said the move was being opposed as the very objective of nationalisation of banking sector was in peril as the process of privatisation of banks has already started. The move to issue new banking licences had put the economy of the country at risk, Nanda said.

I don't want seven more clones of existing banks, says FM

05 Oct 2013

Says the new banks should have a differentiated approach to cater to the needs of a special group of customers who do not have banking today

Finance Minister P Chidambaram on Monday said “several” new banks, licences for which would be issued by the Reserve Bank of India shortly, should have a differentiated approach rather than becoming clones of existing banks.

Addressing a function at the State Bank of Mysore, Chidambaram said he was happy that the governor had spoken about differentiated licences. “We don’t want seven more clones. We don’t want the seven of them look like each other with just a masthead bearing a different name. We want each one of them to cater to the needs of a special group of customers who do not have banking today. Each one must pursue a different path."

Though the finance minister didn’t elaborate, the RBI had earlier talked about differentiated licensing on the lines of the US and Singapore.

Differentiated licensing could enable specialists such as infrastructure lenders or gold loan companies to do niche lending and get a regulatory treatment different to what it is for existing banks. The RBI had in August this year suggested that after years of a single-track approach to bank licensing, it could consider different types of licensing. “With the broadening and deepening of the financial sector, some banks may choose to operate in niche areas. This has certain obvious advantages in terms of managing business and also risk management. Some countries have a differentiated bank licensing regime where differentiated licences are issued specifically outlining the activities that the licensed entity can undertake,” an RBI paper had said.

While Singapore has five different kinds of licences, Hong Kong has a three-tier structure. As many as 26 firms, including top corporate houses such as Tata Sons, L&T, Reliance Group, Aditya Birla Nuvo, Bajaj, Shriram and Religare have sought banking licences. Among public sector units, India Post and IFCI have submitted applications. Microfinance institutions such as Bandhan Financial and Janalakshmi Financial, too, have expressed interest.

On his first day in office, Rajan had said the licences would be issued by January next year. He said

also the RBI intended to make the banking licensing process "more frequent". The Reserve Bank had issued guidelines for the latest round of bank licences on February 22 this year and had come out with clarifications in June.

In the past 20 years, the RBI has licensed 12 private banks in two phases. Ten banks were licensed on the basis of guidelines issued in January 1993. The guidelines were revised in January 2001 and fresh applications were invited. Kotak Mahindra Bank and YES Bank were the last two entities to get licences in 2003-04.

Meanwhile, commenting on infusing more capital into public sector banks than what was announced in Budget 2013-14, the minister said the government was waiting for banks to come up with specific plans. “Banks will be encouraged to lend more in certain sectors at lower rates to boost demand. Let each bank come up with what it can do. Then we can aggregate the demand and calculate what additional capital they require, and they will be provided that,” he added.

3-member panel headed by Jalan to scrutinise new bank licences

04 Oct 2013

The Reserve Bank on Friday set up a three-member committee under former Governor Bimal Jalan to scrutinise applications for new bank licences, .

The Reserve Bank on Friday set up a three-member committee under former Governor Bimal Jalan to scrutinise applications for new bank licences, which are expected to be awarded by by January.

"We have set up the committee under Bimal Jalan for bank licences, Usha Thorat (former RBI Deputy Governor), C B Bhave (former Sebi chairman) and Nachiket Mor (financial sector expert)...We will try our best to do it by January 2014," RBI Governor Raghuram Rajan said at a press conference here after a board meeting.

The panel will make its recommendations to the Governor and Deputy Governors, who will make the final proposals to the committee of the RBI central board.

Rajan said the central bank would endeavour to do "as much as possible" before RBI Deputy Governor Anand Sinha, who looks after new bank licences, retires in January 2014.

There are 26 applicants from the public and private sector for bank licences, including Tata Sons, India's biggest business group, and firms controlled by billionaires Anil Ambani and Kumar Mangalam Birla.

Among public sector units, India Post and IFCI have submitted applications. Micro finance institutions such as Bandhan Financial Services and Janalakshmi Financial, too, have expressed their intention to set up banks.

When Rajan took charge as the 23rd Governor of the RBI last month, he had said that an external committee headed by Jalan would screen applications for bank licences.

The RBI had issued guidelines for licensing of new banks in the private sector on February 22 and came out with clarifications in the first week of June.

RBI working overtime to meet Rajan's licence deadline

30 Sep 2013

RBI has deployed additional hands to screen the applications which range from business conglomerates to micro-lenders

Parliament’s standing committee might have expressed its reservations on business houses being allowed to start banking operations. But the Reserve Bank of India (RBI) is hardly deterred. It is working overtime to shortlist the names of candidates from among 26 applicants.

RBI has deployed additional hands to screen the applications, from a wide range of corporate houses — from conglomerates to micro lenders.

After the screening, the shortlisted candidates will be vetted by an external committee, to be headed by former RBI governor, Bimal Jalan. The names of the other members of the committee have yet to be finalised.

Apart from officials from the department of banking operations and development — the RBI wing that has drafted the licence norms and is primarily responsible for shortlisting —20-odd officers are also learnt to be involved in the screening process.

According to sources, these officers have been chosen on the basis of their core competency in areas like corporate finance, accountancy and legal matters, among other things.

Four to five teams, each headed by a general manager, have been created to look into various aspects of the applications. The entire process of screening the applications is being overseen by Anand Sinha, RBI’s deputy governor in charge of banking operations and development portfolio.

Raghuram Rajan, who took charge as RBI governor on September 4, had said on his first day in office the names would be finalised before or soon after Sinha retires in January 2014.

While the screening team is working on weekends, too, it is not yet clear if the corporate houses would be given licences. It is for the first time that companies are being considered for entry into the banking sector.

The standing committee’s recent suggestions were likely to add complications, central banking sources said.

On Saturday, B Mahapatra, an executive director of RBI who is involved with the banking licence process and reports directly to Sinha, defended the central bank’s decision to allow companies on the ground that business houses had ‘deep pockets’ to carry out capital and technology-intensive financial inclusion projects. Though Mahapatra enumerated the safety nets the central bank had put in place to mitigate conflict of interest and ensure there was no self-dealing, he said RBI’s regulatory and supervisory effectiveness would be tested in preventing new banks, promoted by industrial houses, from self-dealings.

In such a situation, the governor’s view becomes critical. While Rajan’s views since he took charge as governor are not known, he was not in favour of corporate houses’ entry into banking before he joined RBI. 

"I think the old RBI policy of not allowing corporates banking licence was good one. I still stand by that. Whether it will continue with this or not is a different question," Rajan had said in April 2011, when he was an honorary advisor to Prime Minister Manmohan Singh. He was more in favour for entry of non-banking finance companies) and microfinance institutions. 

BANKING ON NEW BANKERS

2010 Feb 26 > Former FM (now President) Pranab Mukherjee announces in his Budget speech

that corporate and business houses will be allowed to set up banks Aug 11 > RBI releases discussion paper on entry of new banks in the private sector Dec 23 > RBI releases gist of comments from the feedback on the discussion paper

2011

Aug 29 > RBI releases draft guidelines for licensing of new banks in the private sector

2012

Jul 10 > RBI releases gist of comments from the feedback on draft guidelines Dec 18 > Lok Sabha passes Banking Laws (Amendment) Bill, paving the way for RBI to

issue final guidelines on new bank licences

2013

Feb 24 > RBI issues final guidelines for new banking licences Jun 3 > RBI responds to clarifications sought by aspirants on final norms July 1 > Deadline for filing of application ends Sep 4 > After taking charge as RBI governor, Raghuram Rajan announces setting up of an

external committee under former governor Bimal Jalan to vet applications for new banking licences, likely to be issued around January 2014

RBI likely to finish scrutiny of bank licence applications in a month

29 Sep 2013

Shortlisted names would be forwarded to Bimal Jalan panel for further action

The Reserve Bank of India (RBI) is likely to complete initial scrutiny of 26 applications for new bank licences in a month, an RBI official said. Thereafter, the shortlisted names would be forwarded to the Bimal Jalan panel for further action.

“It is being screened. The eligibility of the applicants including ‘fit and proper’ criteria and other relevant parameters, are being scrutinised,” the official said.

The names will go to the High Level Advisory Committee chaired by former RBI Governor Bimal Jalan.

Soon after Raghuram Rajan took charge as the 23rd Governor of RBI this month, he had said that an external committee would be headed by Jalan to screen the 26 applications for bank licences.

"We are in the process of constituting an external committee. Bimal Jalan, an illustrious former Governor, has agreed to chair it and the committee will be composed of individuals with impeccable reputation," Rajan had said.

The panel will have its own procedures for screening the applications.

The external committee will make recommendations to the Governor and Deputy Governors, who will propose the final state to the Committee of the RBI central board. Tata Sons, and firms controlled by Anil Ambani and Kumar Mangalam Birla are among the 26 entities that applied for bank licences two months ago.

Among public sector units, India Post and IFCI have submitted applications. Micro finance institutions such as Bandhan Financial Services and Janalakshmi Financial, too, have expressed their intention to set up banks.

The RBI had issued guidelines for Licensing of New Banks in the Private Sector on February 22 and came out with clarifications in the first week of June.

In the past 20 years, the RBI has licensed 12 banks in the private sector in two phases. Ten banks were licensed on the basis of guidelines issued in January 1993.

The guidelines were revised in January 2001 based on the experience gained from the functioning of these banks and fresh applications were invited. Kotak Mahindra Bank and Yes Bank were the last two entities to get banking licenses from the RBI in 2003-04.

In the 2001 round of guidelines for new licences, the external committee members were C G Somiah, former government auditor CAG, I G Patel, former RBI Governor, and Dipankar Basu, former head of State Bank of India.

Parliamentary panel against entry of corporate houses in banking space

28 Sep 2013

The panel, headed by Yashwant Sinha, also recommends doubling of initial paid-up capital to Rs 1,000 cr

The Parliamentary standing committee on finance has raised concerns on issuing of banking licences to corporations at a time when the Reserve Bank of India (RBI) is scrutinising the applications for new lenders.

The panel, headed by Bharatiya Janata Party leader and former finance minister Yashwant Sinha, also recommended in a report doubling the initial paid-up capital to Rs 1,000 crore against Rs 500 crore as mandated by RBI. The panel warned against discretionary powers given to RBI for new licenses, saying this might lead to irregularities in this area, at a time when already various scams are flying thick and fast, people aware of the development said.

Incidentally, Congress vice-president Rahul Gandhi is also part of the panel, but there is no dissent note added to the report. This means that the Nehru-Gandhi scion has once again concurred with points against the Congress' own government's policies.

CONCERNS GALORE The panel warned against discretionary powers given to the Reserve Bank of India

(RBI) for new licences, saying this may lead to irregularities in this area Incidentally, Congress Vice-President Rahul Gandhi is also part of the panel, but there is no

dissent note added to the report Those aware of the development said members in the report incorporated concerns over

giving licences to corporates The RBI can reject or accept an application on the basis of fit and proper criteria, which

members said are ambiguous As many as 26 applications had been received for bank licences on the close on July 1,

2013 Firms controlled by Tatas, Anil Ambani  and Kumar Manglam Birla have applied for

licences In the past 20 years, the RBI has licensed 12 banks in the private sector in two phases. Ten

banks were licensed on the basis of guidelines issued in January 1993

The issue here is how these recommendations would matter since RBI is already in the process of scrutinising applications for banking licences, said a banking sector expert, who asked not to be named. It would be difficult to amend the RBI guidelines at this moment, unlike an Ordinance which could be withdrawn, he added.

However, in an extreme situation, Parliament can always mandate RBI to certain direction by amending relevant laws, the expert added.

According to sources, members in the panel cited several other key economies that have not given banking licences to corporate houses. Earlier, the International Monetary Fund had also warned against giving banking licences to industrial houses.

However, RBI's discussion paper on new banking licence in August, 2010 said most developed countries such as Australia, Canada, the European Union, Germany, France and the UK did not specifically restrict companies from setting up banks, but limit the percentage of voting rights and controlling positions that any shareholder could obtain with the prior approval of the regulatory authorities.

RBI can reject or accept any application on the basis of fit-and-proper criteria, which members said are ambiguous.

As many as 26 applications had been received for bank licences on the close on July 1, 2013. Firms controlled by Tatas, Anil Ambani and Kumar Manglam Birla have applied for licences.

Currently, RBI is scrutinising these applications. After that, a committee headed by former RBI governor Bimal Jalan will look into them. In the past 20 years, RBI has licensed 12 banks in the private sector in two phases. Ten banks were licensed on the basis of guidelines issued in January 1993. Kotak Mahindra Bank and YES Bank were the last two entrants.

Will look into new bank licences after RBI scrutiny: Jalan

26 Sep 2013

The proposed external committee will look into new bank licence applications once RBI completes the basic scrutiny, said Bimal Jalan who heads

The proposed external committee will look into new bank licence applications once RBI completes the basic scrutiny, said Bimal Jalan who heads the High Level Advisory Committee (HLAC).

"Work is still in progress. The Reserve Bank has received applications. It is doing first round of scrutiny. Then we will see how we go about it," Jalan said at AIMA event here today.

Soon after Raghuram Rajan took charge as the 23rd Governor of RBI, he had said that an external committee would be headed by former central bank Governor Bimal Jalan to screen the 26 applications for bank licences.

"We are in the process of constituting an external committee. Bimal Jalan, an illustrious former Governor, has agreed to chair it and the committee will be composed of individuals with impeccable reputation," Rajan had said.

The external committee will make recommendations to the Governor and Deputy Governors, who will propose the final slate to the Committee of the RBI central board.

Tata Sons, India's biggest business group, and firms controlled by billionaires Anil Ambani and Kumar Mangalam Birla are among the 26 entities that applied for bank licences last month.

Among public sector units, India Post and IFCI have submitted applications. Micro finance institutions such as Bandhan Financial Services and Janalakshmi Financial, too, have expressed their intention to set up banks.

The RBI had issued guidelines for Licensing of New Banks in the Private Sector on February 22 and came out with clarifications in the first week of June.

In the past 20 years, the RBI has licensed 12 banks in the private sector in two phases. Ten banks were licensed on the basis of guidelines issued in January 1993.

The guidelines were revised in January 2001 based on the experience gained from the functioning of these banks and fresh applications were invited. Kotak Mahindra Bank and Yes Bank were the last two entities to get banking licenses from the RBI in 2003-04.

In the 2001 round of guidelines for new licences, the external committee members were C G Somiah, former government auditor CAG, I G Patel, former RBI Governor, and Dipankar Basu, former head of State Bank of India.

RBI corrects own mistake but doesn't pardon Videocon's

11 Sep 2013

Confusion galore over new bank licences: One applicant makes entry after 3 months, another seeks to withdraw its withdrawal letter

It’s not often the Reserve Bank of India (RBI) publicly acknowledges a mistake, even an inadvertent one. However, on Friday, a press statement from the central bank on the highly sensitive issue of new bank licences said it had inadvertently left out the name of an applicant, K C Land & Finance Ltd, from the list of companies that had applied for bank licences.

On July 1, the central bank had released a list of 26 bank licence aspirants.

In the same press statement, RBI said Aurangabad-based Value Industries had withdrawn its application. Value Industries, part of the Videocon Group, as well as its chief Venugopal Dhoot, immediately denied they had withdrawn from the race.

Sources familiar with the developments say there was a lot of confusion within the Videocon Group, as the officials handling the licensing issue were under the impression the group had given another application in the name of Videocon and RBI was considering that as the main application. Therefore, the officials decided to fax a letter to RBI, requesting withdrawal of the Value Industries application. Later, when the group officials realised Videocon hadn’t applied separately, it wrote to the banking regulator, requesting Value Industries’ application be reconsidered.

However, the banking regulator was in no mood to entertain the request.

Venugopal Dhoot, promoter of Value Industries and chairman of Videocon Industries, told Business Standard, “There was some miscommunication between us and RBI. We are hoping to sort this out in the next few days. We have not withdrawn the application and have only sought clarifications from RBI on certain issues.”

On Chandigarh-based KC Land & Finance, RBI admitted the application concerned was received at its central office, Mumbai, on July 1, “but was inadvertently not included in the list of applicants for new bank licences in the private sector”. Now, it was “being included in the list”. KC Land & Finance is involved in the real estate and hospitality sectors.

Prospective applicants have questioned why RBI took about three months to ascertain it had missed the name of an applicant. The process of granting fresh licences was initiated about three years ago and the central bank had issued the final guidelines in February this year. Banking aspirants were given time till July 1 to submit applications.

Last week, new RBI Governor Raghuram Rajan said he expected to grant fresh licences in January 2014. He added an external committee under the chairmanship of former RBI governor Bimal Jalan would be formed to vet the applications.

Rajan hits the ground running05 Sep 2013

Bimal jalan to head panel on new bank licences; Branch licensing for domestic banks freed

Freeing up branch licensing is another key reform Rajan announced on Wednesday. At present, banks need to take prior approval of RBI for opening branches in Tier-I centres (with population of more than 100,000, except in the Northeast and Sikkim). For Tier-II to Tier-VI towns, banks can open branches, subject to reporting. However, banks are required to ensure they open 25 per cent of their branches in unbanked rural areas (Tier-V and -VI).

In a move to ensure flow of credit to productive sectors and curb ‘lazy banking’, Rajan proposed reduction of banks’ requirement to invest in government securities. As of now, banks need to hold at least 23 per cent of their net demand and time liabilities in government securities.

BS Bank Aspirex extends fall for the second consecutive month

30 Aug 2013

IDFC, IFCI, Magma Fincorp and Bajaj Finance were down over 10 per cent each in August, after falling more than 8 per cent each during the ...

Among individual stocks, IDFC, IFCI, Magma Fincorp, Bajaj Finance, Edelweiss Financial Services and Srei Infrastructure Finance hits 52-week low on BSE.

“While the recent sell-off has been broad-based, financials have taken a large hit as they were most directly impacted by RBI's policy measures to curb liquidity. The immediate risk is that recent policy actions to defend the rupee – if prolonged – have the potential to further dent growth,” said Pankaj Murarka, senior fund manager (equity) at Axis MF.

Steep fall IDFC, which has the highest weightage of 15.36 per cent in Aspirex, has fallen 26 per cent in past

one month to Rs 8215 after the company lowered foreign institutional investors (FIIs) limit.

The infrastructure finance company imposed these restrictions to help it meet the RBI’s restriction on foreign investment (at less than 50 per cent for new banks) in case it gets a license. The current FII holding in IDFC is 53.7 per cent, slightly lower than the new cap of 54 per cent.

Rajan wants clarity on new bank licences by January

22 Aug 2013

RBI forms internal panel to screen applications

The macro economic situation and currency depreciation might top the priority list of Reserve Bank of India (RBI) governor-designate Raghuram Rajan. In addition, having new lenders at the earliest also has a prime place on his agenda.

The economist-turned-central banker, now officer on special duty in RBI before taking full charge on September 5, had several one-on-one meetings on Monday and Tuesday with deputy governors and executive directors, before flying back to Delhi. In his interactions with the department of banking development and operations, headed by Deputy Governor Anand Sinha, he said the process of awarding new bank licences should see a definitive step before Sinha’s term ends on January 18, 2014.

A source said: “Rajan realises that fresh licences cannot be given before Sinha's term ends, as the initial screening of the applicants will take some time. But he wants the process to have a definitive shape before Sinha demits office.”

Sinha was appointed as deputy governor in January 2011. Last year, the government extended his term by 11 months. He is the first deputy governor whose term was extended beyond the age of 62, the normal retirement age for this post, as he was overseeing the new bank licence process.

The architect of the new bank licence norms, Sinha is also responsible for the initial screening of the 26 applicant groups. The central bank had put in place a team of 12-13 members, of general managers, for the screening. RBI will seek additional information from the applicants whenever necessary.

After the initial screening, the central bank will set up an external committee to vet the shortlisted applications, to be then forwarded to RBI. The apex bank will give in-principle approvals to the applicants for setting up of banks within 18 months.

Finance Minister P Chidambaram informed the Lok Sabha on Tuesday that RBI will give in-principle approvals during the first quarter of 2014.

“At the first stage, the applications will be screened by RBI to ensure prima facie eligibility of applicants, including the assessment of fit and proper status,” he said in a written reply to the Lok Sabha on Tuesday.

RBI is set to allow new banks after a little more than a decade and for the first time has opened the door to industrial and business houses.

This round was initiated in February 2010 when then finance minister Pranab Mukherjee announced it in the Budget speech. Following the announcement, RBI issued a discussion paper and then the draft guidelines. The final norms for aspirants were released in February this year and time was given till July 1 for applications and business plans. Tata Sons, Larsen & Toubro, Aditya Birla Group and Religare are among those who’ve applied for licences, along with non-banking finance companies and microfinance institutions.

In-principle approvals for new banks by Q1 of 2014: Chidambaram

21 Aug 2013

The applications will be screened by RBI to ensure prima facie eligibility of applicants

Reserve Bank of India (RBI) is expected to give in-principle approvals for new banks during the first quarter of next year, Finance Minister P Chidambaram said. “At the first stage, the applications will be screened by RBI to ensure prima facie eligibility of applicants, including the assessment of fit and proper status of applicants,” he said in a written reply to the Lok Sabha on Tuesday.

“Thereafter, the applications would be referred to a high level advisory committee to be set up by RBI. In view of the processes involved, it is expected that ‘in-principle’ approvals for new banks would come by the first quarter of 2014,” he said. The last date for submitting the applications for grant of new bank licence was July 1, he said, adding, RBI had received 26 applications.

According to him, to achieve the objective of financial inclusion the new guidelines stipulate the banks to open at least 25 per cent of their branches in unbanked rural centres  to avoid over

concentration of their branches in metropolitan areas and cities.    The guidelines also stipulate that the new banks should comply with the priority sector lending targets and sub-targets as applicable to the existing domestic banks.

For this purpose, Chidambaram said, the bank should build its priority sector lending portfolio from the commencement of its operations. RBI has not invited any application from any foreign bank in the recent past, he said. Currently, permission for opening of branches by foreign banks in India is guided by India’s commitment to World Trade Organisation of 12 branches in a year, he said, adding, at present, foreign banks operate in India as branches of their parent banks.

In a reply to another question, Chidambaram said: “It has been decided by RBI, that as a one-time measure, the financials of all these 34,754 companies (other than those registered with RBI) will be examined to ascertain their eligibility or otherwise for registration with RBI,” he said. “The main objective is to determine whether among these companies there are Non banking financial company that ought to have registered with the RBI for carrying on their non-banking financial institution activities,” he said.

Other things to be know

RBI proposed a minimum capital requirement of Rs 500 crore. How do you plan to raise the funds for this and for further capital infusion?

According to RBI norms, for the first three years the minimum capital requirement is Rs 200 crore. The initial requirement would be met through internal accrual, associate companies, friends, relatives and foreign direct investment. Future requirements would follow the same pattern.