However, IFCI itself which itself doomed with NPA level may need some kind of capital infusion. So, it is not quite feasible that they would think of acquiring a bank. Giant PSU banks are also ruled out because they have to seek government permission and the process may be too tedious and prolonged. Besides, for PSU banks, the need of the hour is to put their own house in order by shedding flab, computerising branches, setting up ATMs, internet banking and so on rather than look out for acquisitions. HDFC banks has almost completed integrating operations with Times bank, yet a lot of finer details have to be taken care of.
Foreign banks are the only ones left out.
Even among the prominent foreign banks, most of them are already present in India. And for a foreign bank to take stake in an Indian banks, RBI requires that it does not have any branch in India. Also, they are allowedto take only a maximum of 20 per cent. And then why should a foreign bank take an exposure to a bank which has more presence in small towns. Ideally, it would like to take exposure to banks which are present in the metros and have a good deal of corporate accounts.