Videocon to enter banking, earmarks Rs 1,000 crore
With RBI issuing guidelines for new bank licences, diversified group Videocon Industries today said it will enter the banking sector with a foreign partner and has earmarked Rs 1,000 crore for the purpose.
"Already, we have entered the financial sector through our joint venture with Liberty Mutual Insurance. Now that the guidelines for new banking licence have come, Videocon will definitely apply for it," Videocon Industries Chairman Venugopal Dhoot said.
He said the company meets the criteria set by Reserve Bank of India (RBI) for the new banking licence and would use its experience of collaborations with foreign partners.
"We have the credentials and track record of more than 10 years. We are the one who brought the likes of Toshiba, Panasonic and others to India. So, we have the experience and expertise for collaborations with foreign partners," he said.
When asked how much fund Videocon has earmarked for the planned foray into banking, Dhoot said: "The minimum requirement as per RBI is Rs 500 crore but we have set aside Rs 1,000 crore. There is a big market in rural and semi-urban areas."
Although the company will also focus on urban areas, he said: "The Videocon brand has a strong equity in rural and semi-urban areas. We intend to exploit that. Moreover, we have over 500 offices across India at present and we will leverage on that as and when we enter the banking sector."
When asked if the firm would foray into banking on its own, he said: "No. We are talking to an
