RBI deputy Anand Sinha to offer L&T top brass governance tips

MUMBAI: Reserve Bank of India (RBI) deputy governor Anand Sinha will address the top brass of engineering conglomerate Larsen & Toubro (L&T) on governance issues in banking, cementing the seriousness of the group’s desire to own a bank. Sinha will address the executives on “governance in banks and other financial institutions”, says the information posted on RBI’s website.

The engineering major’s unit, L&T Financial Holdings, has expressed its desire to convert itself or own a bank as and when the regulator allows the new ones.

Indeed, experts in regulations believe that L&T Finance stands a better chance of getting a licence with a stamp of professionalism in running institutions and being diversified without any dominant owner. After years of waiting, the RBI recently spelt out new bank licence norms that allow business houses, state-owned companies and non-banking finance companies (NBFCs) seeking to set up banks in a bid to extend banking services to half the population excluded from these services.

Sinha’s address comes just weeks after the World Bank barred L&T from participating in any of its projects for some time on charges of “fraud practices" by one of its staff.