Mukesh Ambani –DE Shaw Likely To Set Up India’s Largest Private Bank

We draw your attention our blog “ Banking Licenses to Private Players - A pretty good move”

posted on on 17^th August, 2010.

Now the captioned news suggests that already action has begun in that sphere. Mukesh Ambani group is joining hands with DE Shaw to enter into banking business in a bigway.

It is heartening to note. At the same time, lingering doubts conquering my mind that by any chance even this space will also be occupied by the big boys the way it has happened in the case merchant bankers and primary market.

Allowing private banks to operate is a good move. But if you look at the policy statements of late, these decisions are mostly giving only big players a room to play. The field is totally occupied by them. Agreed that these are all capital intensive activities, but, markets shall be conducive for mobilization of capital and not for the concentration of capital in few hands which is neither good for the country, economy nor for healthy competition.

Therefore steps shall be taken to make as many people as possible, especially, from rural sector to participate in this process to give a true meaning to the words “ collective growth” , “ inclusive growth” etc.

Setting aside all this, we shall welcome this venture and the financial innovations that will come along with it and we sincerely wish that this synergy shall bring global financial opportunities to our Indian corprates.