Euphoria waning, NBFCs are now wondering if becoming banks is worth it
Bajaj Finserve, one of the largest non-bank lenders, said they are still evaluating the proposals.
A Reserve Bank of India working group, set up for reviewing private bank ownership, said that well run large NBFCs with minimum asset size of Rs 50,000 crore, including those which are owned by a corporate house, may be considered for conversion into banks.
KOLKATA: Initial euphoria about non-banking finance companies (NBFCs) converting into banks is slowly giving way to questions whether it would be worth their while when it is still a struggle for many existing banks to mobilise low cost deposits.The cost of conversion would also likely offset the benefit they get from low cost deposits, captains of the industry said. NBFCs enjoy the regulation-light structure and can undertake activities that