After RBI nod, scramble for banking licences begins
These companies may also convert into a bank and divest the activities which banks are not allowed to undertake departmentally. In such a case, the bank shall have a minimum net worth of R500 crore. Moreover, with the central bank’s clause to open 25% of bank branches in unbanked rural centres, which have a population up to 9,999 as per the latest census, NBFCs with a mighty rural presence like Mahindra & Mahindra Finance are keen to apply for a banking licence.
Sam Ghosh, chief executive officer, Reliance Capital, said the guidelines are “forward looking and Reliance Capital will be interested in applying for a banking licence”.
“We are most eminently eligible for a bank. That too, not just going by what the guidelines say, but also going by our successful track record of more than 10 years as a leading financial services conglomerate,” said Ajit Mittal, group executive director, Indiabulls Group.
Public sector major Power Finance Corporation (PFC) had also hired Deloitte to help it evaluate various options for diversifying into new businesses, including applying for a new bank licence, as the state-run lender fears its current business model may not be sustainable in the long run.
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