Industry associations representing corporate houses have said to the Reserve Bank of India that they should be permitted to have atleast 26% equity stake in the banks which they sponsor.

The corporate representatives supported their statement saying that a 26% holding will also be a reflective of their level of commitment to the banks.

"This (the 26% stake) would ensure balance between the need to ensure long-term commitment by keeping control over key decisions with the need to reduce operating control," said a statement issued by Ficci.

RBI has been in talks with several associations since the draft guidelines for banking licenses was released in August.

"To contain the possibility of ‘holding out' if an industrial or business house comes under severe stress, industrial and business houses may not be allowed to use the brand name and logo of the group," RBI had said in the discussion paper.

"At least, 50-100 licences should be given so that an explosion of competitive spirit happens, like it did with the insurance sector," Assocham president Swati Piramal said after meeting RBI officials here, said agency reports.