With the Reserve Bank of India (RBI) releasing guidelines for new bank licenses, a slew of industry conglomerates are interested to make a foray into banking business.
One among them is the Chennai-based Shriram Group, promoted by R Thyagarajan. The group, which is one of the contenders for a banking licence, said it wants to foray into the banking sector and may focus on small-ticket loans and will have a low-cost model.
At the moment, the group is learnt to be studying the regulations and it may plan the business strategy based on the suggestion of its internal counsels. The group plans to submit application for the license before July.
The group feels that it may be able to service low-income groups and small borrowers effectively by leveraging on technology.
The group does not see the Rs 500-crore paid-up capital requirement as a deterrent. Shriram Capital, which is in the nature of a financial services holding company, may apply for the bank license.
While the group does not see any deterrent in applying for a banking licence, it is still in the process of examining the regulations and does not see any advantage in being the first mover in terms of applying for a licence.
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