INSUBCONTINENT EXCLUSIVE:
Financially strong regional rural banks ( RRBs) may be soon able to tap the market through an IPO and dilute government stake in them, if
the government accepts Nabard's proposal
The apex agri and rural lender has sent an internal note to the government identifying eligible RRBs.
Nabard, the apex body for agri-lending
and rural finance, has identifies about five RRBs across the country which could be able to successfully raise capital through an IPO,
according to officials familiar with the development
said Nabard chairman Harshkumar Bhanwala at a media conference in Mumbai on Wednesday.
Nabard has given its recommendations on the possible
amount , the instruments Subscribers for a successful IPO by an RRB in an internal note sent to the government, said Bhanwala
Allowing
Currently, the central government owns 50%, state government 15% and sponsor bank, which is generally a public sector bank
As of March 2017, there are 56 RRB in the country with a combined balance sheet size of Rs 4.7 lakh crore
The final quantum of borrowing would however depend on business demand and the shortfall of the funds that the Reserve Bank releases under
the rural infrastructure development fund or RIDF , which is essentially comprises the priority sector lending shortfall by foreign banks in
