The government appears to have endorsed State Bank of India s (SBI) plan to set up a financial holding company. The holding company will help SBI to raise capital, which can then be used for expanding subsidiary businesses. The holding company model would help SBI infuse capital into business areas such as private equity, reinsurance, mezzanine financing and credit enhancement, an SBI board member told FE. The bank can also pump in funds into its insurance business. R Gopalan, secretary, department of financial services, finance ministry said The government would take a call on the matter after the Reserve Bank of ...

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