Shriram Capital Ltd (SCL), part of the Shriram Group, will soon pitch for a banking licence. Having decade-old experience and expertise in financial services sector, SCL will move the Reserve Bank of India (RBI), seeking a licence to enter the banking sector, said G S Sundararajan, managing director, SCL. ?We are waiting for the apex bank to come out with a fresh set of guidelines and we hope that it would take place in the second quarter of 2010 (before June 2010). Based on that, we would move the RBI for a licence,? he said. ?With experience and expertise in the financial services sector, including in truck, consumer finance segements, life and general insurance areas, chit funds and brokerage services, we feel that the banking sector is the next logical step for us to enter into and we hope that we will be considered favourably by the RBI once it decides to allow entry of private entrants and NBFCs,? he said.
To a question, he said, ?We are preparing ourselves to enter this sector. Though it is too early to talk about equity holding, we feel SCL may be allowed to have around 30% to 40% equity holding in the banking entity.? Being headquartered in Chennai, the group will have its banking headquarters in Chennai too, he said. To a specific question, he said, ?If everything goes well, SCL will be in a position to launch its operations by end 2010 or early 2011.? According to him, SCL is in final talks with TPG for stake sale in the company. ?We are planning to raise Rs 1,000 crore and we hope to finalise our plans in due course of time. We may dilute upto 20%. TPG has been with us for the last five years and already invested and hold substantial stakes in our group entities. Part of the proposed funds will be utilised for our group companies growth, while substantial portion will be towards new focus areas such as power, reneweable energy, infrastrucutre, real estate, he said.
The group is also looking at opportunities in wealth management, mortgage and asset management, he added.