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Companies show strong interest in banking venture

Companies show strong interest in banking venture
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According to informed sources, over 100 entities have shown interest in venturing into banking business following the release of the final guidelines by the Reserve Bank of India (RBI).

It may be recalled that in February 2013, the central bank released its guidelines for licensing of new banking operations and invited applications for licenses before July 1, 2013.

The RBI also asked all the interested parties to seek any clarifications they might have on the issue by April 10.

Following this, several prospective applicants are learnt to have sought clarification on rules for grant of new banking licences and on ‘ambiguity’ in various areas.

According to some sources, the central bank may issue 8-10 new licences, at the most as the sector is already highly competitive.

Many large business groups such as Anil Ambani-led Reliance Group, L&T, Mahindras, Birlas, Religare and Videocon have already made public their intentions to apply for the licence.

Some NBFCs like Shriram group, Indiabulls, India Infoline, IFCI and PFC have also evinced interest.

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