"Entities/groups in the private sector, entities in the public sector and non-banking financial companies (NBFCs) shall be eligible to set up a bank through a wholly-owned non-operative financial holding company (NOFHC)," RBI said in a notification.
RBI, however, said those banks promoted by groups having 40 per cent or more assets or income from non-financial business will require its approval for raising paid-up equity capital beyond Rs 1,000 crore for every block of Rs 500 crore
Shares of the Mahindra & Mahindra rose more than 6% and was seen trading at Rs 211 on BSE at 9.50 am IST. Shriram Transport rose and was seen trading at Rs 715. Reliance capital gained 2% at Rs 415.
Companies who are eligible and could get new banking licenses could get more attention from investors.