Centre looks at Bank Investment Company model after RBI concern on zero coupon bonds for PSB recap
Sources said that the RBI has raised some issues with regard to calculation of an effective capital infusion made in any bank through this instrument issued at par.
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By PTI
NEW DELHI: With the RBI raising concern over the issuance of zero coupon bonds for recapitalisation of public sector banks (PSBs), the Finance Ministry is examining other avenues for affordable capital infusion including setting up of a Bank Investment Company (BIC), sources said.
Setting up a BIC as a holding company or a core investment company was suggested by the PJ Nayak Committee in its report on 'Governance of Boards of Banks in India'.