Saturday, August 15

RBI nod to Japan's SMBC to set up local unit

BENGALURU: India's ​central bank has granted ⁠an "in-principle" approval to Japan's Sumitomo Mitsui Banking Corp (SMBC) for setting ‌up a ‌wholly-owned subsidiary in the country, ‌the regulator said in a statement on Wednesday.SMBC, which last year picked up ​a 24% ​stake in Indian lender Yes ‌Bank, ‍was so far ‍operating in India through a branch. ‌A Indian subsidiary will give the bank greater flexibility in its operations.A wholly-owned subsidiary is a separate ‍legal entity in India that allows a bank ‍treatment ⁠similar ⁠to local peers, including freedom to open branches without restriction.Such a subsidiary's capital is ring-fenced from the parent bank's.
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