RBI Unlikely To Let Private Equity Firms Own Significant Stake In Domestic Banks

RBI Unlikely To Let Private Equity Firms Own Significant Stake In Domestic Banks

While India's banking regulator remains open to the idea of allowing foreign banks to own a 26% stake in domestic lenders, private equity firms will likely not get approvals, according to two people with knowledge of the matter.The Reserve Bank of India is concerned with the rapid stake sales by these investors in domestic banks, the people quoted above said.In lenders such as Yes Bank, private equity funds have exited their investments in a few…