Videocon to foray banking sector, earmarked Rs 1,000 cr for the plan

With RBI issuing guidelines for new bank licenses, diversified group Videocon Industries stated in the media that it is all set to foray banking sector now. The group will be collaborating with a foreign partner and has allocated 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 license have come, Videocon will definitely apply for it", Chairman, Videocon Industries, Venugopal Dhoot told media.

The company officials on publicizing their foreign collaborations stated that in the past it had brought Toshiba, Panasonic and others to India, so, a nice experience is already there in the portfolio.

Moreover, Videocon officials also expressed their happiness over foraying into the banking domain and mentioned in the media that earlier the foray was planned individually; however, the company; later shook hands with an American Bank. Partnering with a majority partner will enable diluting stake to public in order to meet regulatory norms in future, officials told media.

The company is quite confident about the strategy as it realizes the brand value and consumer delight it had garnered over the years.

"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", one of the company officials told media.

Videocon, with plans to enter the banking sector, is supposed to submit the relevant applications by July 1, 2013, as per the RBI guidelines.