Banking Few hopes dashed, few altered n Emkay

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Banking

Few hopes dashed, few altered

n     RBI issues draft guidelines for entry of new banks in the private sector space. Finalisation to be a prolonged procedure as amendment to banking regulation act a pre-condition

n     Dashes hopes for entities which have even insignificant exposure (10%) to either real estate or brokerage or both. Negative for Religare Enterprises, Indiabulls Group, IIFL

n     Positive for PFC, REC, LICHF, SREI or MMFS, however will require corporate restructuring

n     License may be still hard to come by as the final discretionary powers lie with RBI. Expect very few licenses for promoters with near impeccable history