New Delhi, Aug. 13: Bankers today welcomed most of the amendments that the government planned to introduce in the Banking Regulations Act 1949.
“Banks have long been demanding they should be able to issue preference shares... It’s good that this has been accepted. In fact banks should be allowed to raise preference capital,” said S. S. Kohli, chairman and managing director of Punjab National Bank.
Asked to comment on the move to introduce new provisions in the act that would allow banks and banking co-operatives to enter into new activities which includes insurance, sponsoring of mutual funds, derivatives and securitisation, P. K. Choudhury, managing director of rating firm Icra, said, “This range of services would cover more or less the entire gamut of financial sector.”
The commercial banks would have quite a few options to enhance their fund-based as well as fee-based revenue streams leveraging their branch network, knowledge and skill sets and considerable amount of resources a their disposal, he added.
“Users of banking services would gain as most of these services would now be available under a single roof,” he said.