26 entities apply for new banking license

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26 entities apply for new banking license
A host of top-notch corporates from the private and public sector have applied for a banking license, the deadline of which past yesterday. The list of applicants are as follows:

1. Aditya Birla Nuvo Ltd., Mumbai.

2. Bajaj Finserv Ltd., Pune.

3. Bandhan Financial Services Pvt. Ltd., Kolkata.

4. Department of Posts, New Delhi.

5. Edelweiss Financial Services Limited, Mumbai.

6. IDFC Limited, Mumbai.

7. IFCI Limited, New Delhi.

8. Indiabulls Housing Finance Limited, New Delhi.

9. India Infoline Ltd., Mumbai.

10. INMACS Management Services Limited, Gurgaon.

11. Janalakshmi Financial Services Pvt. Ltd., Bangalore.

12. J M Financial Limited, Mumbai.

13. LIC Housing Finance Ltd., Mumbai.

14. L & T Finance Holdings Limited, Mumbai.

15. Magma Fincorp Limited, Kolkata.

16. Muthoot Finance Limited, Kochi.

17. Reliance Capital Limited, Mumbai.

18. Religare Enterprises Limited, New Delhi.

19. Shriram Capital Limited, Chennai.

20 Smart Global Ventures Pvt. Ltd., Noida.

21. SREI Infrastructure Finance Limited, Kolkata.

22. Suryamani Financing Company Limited, Kolkata.

23. TATA Sons Limited, Mumbai.

24. Tourism Finance Corporation of India Limited, New Delhi.

25. UAE Exchange & Financial Services Ltd., Kochi.

26. Value Industries Limited, Aurangabad.

Earlier, the RBI had issued guidelines for news banking licences, in which it had said that promoters/ Promoter Groups as defined in the guidelines should be ‘fit and proper' in order to be eligible to promote banks through a wholly owned NOFHC. RBI would assess the ‘fit and proper' status of the applicants on the basis of following criteria:

(a) Promoters/ Promoter Groups should have a past record of sound credentials and integrity;

(b) Promoters/ Promoter Groups should be financially sound and have a successful track record of running their business for at least 10 years.

RBI may, inter alia, seek feedback on applicant Groups on these or any other relevant aspects from other regulators, and enforcement and investigative agencies like Income Tax, CBI, Enforcement Directorate, etc. as deemed appropriate.

(c) Promoter / Promoter Groups' business model and business culture should not be misaligned with the banking model and their business should not potentially put the bank and the banking system at risk on account of group activities such as those which are speculative in nature or subject to high asset price volatility.


Read more about: banking license
Story first published: Tuesday, July 2, 2013, 10:12 [IST]
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