The government has said that ICICI Bank and HDFC Bankcannot be called Indian-owned banks, thus putting at rest the debate produced about the nationality of the leading 2 private sector banks.
DIPP secretary R P Singh said, “At best, the two can be called as Indian-controlled banks.” He said this when queried about the government’s position in the light of the two asking for clarifications on the topic.
He said, “ICICI Bank managing director and CEO Chanda Kochhar met me day before yesterday; she has discussed (the issue) with me”.
ICICI Bank had clarified that it still remains an Indian bank since its management and Board was Indian.
But both ICICI Bank and HDFC Banks have more than 74% foreign holding, which include foreign banks and foreign institutional investors.
While referring to the 6 discussion papers on FDI that DIPP is intending to bring out shortly, he said, “Banks will be covered in one paper which we are trying to bring out on the financial aspects totally. . . it will cover banks also. You know the definition of what is a company controlled by Indians and what is the definition of a company owned by Indians”.