French major Societe Generale aims to undertake its private banking operations by opening a non-banking financial company (NBFC)in India.
?We have already applied to the Reserve Bank of India (RBI) for a license to open a NBFC in India. We hope to receive a response soon,? said
Balakrishnan Kunnambath, managing director and global market manager- India, at Societe Generale.
In September 2007, the Foreign Investment Promotion Board had cleared Societe Generale?s application for an NBFC. On receiving the FIPB clearance, they approached the RBI for its approval on the same.
SG had launched its private banking operations in India in 2005.
?The NBFC route will give us flexibility in doing private banking business. A lot of activities, like portfolio management services, can be done through the NBFC,? Kunnambath said.
Currently, the private banking entity operates with 2 branches in India. They aim to get at least 5-8 branches in the next 12-18 months, said Nipun Mehta, executive director and head of private banking business- India, with Societe Generale.
Nipun Mehta has been appointed as the executive director and head of private banking business for Indian operations. Prior to joining SG Private Banking India, Mehta was chief executive officer of a wealth solutions firm managing assets of high net-worth and ultra high net-worth individuals and non-resident Indians.
SG?s assets under management are about $220 billion (Rs 94,000 crore) in its global private banking operations. In Asia, it is about $20 billion (Rs 8,580 crore billion).
Their private banking business in India is growing more than 40% every year, Kunnambath informed.