Over 100 firms vie for new Indian banking licenses

Rules on new banking licenses continue to confuse, however.

Sources said more than 100 firms intend to apply for a banking license by the July 1 deadline. They noted that only up to 10 firms could receive the licenses.

The Reserve Bank of India, the central bank, is, however, widely expected to allow from four to five new players in a highly competitive banking sector.

Many large business groups such as Reliance Group, L&T, Mahindras, Birlas and Religare have made public their plan to apply for banking licenses.

Non-bank financial companies such as Shriram group, Indiabulls and IFCI have also shown interest. Also reported to be interested in banking licenses are the Tatas and RIL group.

A large number of real estate players have shown initial interest despite their shaky financial positions not being in adherence with RBI norms.