Billionaires Vie to Open Banks as India Eases Rules After Decade

Indian billionaires including Kumar Mangalam Birla are vying to set up banks in the world’s second-most populated nation after rules were eased to allow companies into the business and tap rural savings.

The Reserve Bank of India sought applications from companies with a 10-year track record and “sound credentials and integrity” to apply for licenses by July 1, according to a statement yesterday. Foreign ownership in the banks, which should have an equity capital of 5 billion rupees ($92 million), will be capped at 49 percent, according to the statement. Companies will have to set up 25 percent of their branches in villages and small towns.