Construction major Larsen and Toubro is readying to enter the banking space through its subsidiary, L&T Finance, following the government move to allow new private banks.

“We believe that L&T has the right opportunity now to start a bank,” said A M Naik, chairman, while addressing shareholders at the company’s annual general meeting here today.

Also Read   Related Stories News Now - Hyderabad Metro Rail project awarded to L&T - L&T bags Rs 6,500-cr equipment order - Dry days on deal street - Panyam denies stake sale - L&T bags two orders worth Rs 1,383 cr - Create your own cash flow

Also Read   Related Stories News Now - Markets end on a strong note - Nabard FY14 operating surplus soars 28% to Rs 1,635 cr - RBI eases banks' term deposit restrictions - NMDC Q4 net down 21.74% to Rs 1,642.28 cr - Balrampur Chini Q4 profit up by 15% More

Naik said L&T Finance, which is into both corporate and rural finance, is already one of the three largest non-banking finance companies in India.

“People have trust and confidence in us, which is a good reason for us to go into banking,” Naik said. L&T is also planning to launch the initial public offering of L&T Finance by the end of the year. The company is in discussion with investment bankers over this.

The IPO would go ahead irrespective of plans to enter the banking sector. However, it would take these into account as when these plans crystallise. “We will see how we can structure the company, now that we are so close to it,” Naik said.

Other subsidiaries of this infrastructure major could also make their debut, going ahead. It plans to unlock value in its information technology business in the first quarter of next financial year. Infrastructure development projects could be next in line for entry into the capital markets. Last month, the company bagged one of its biggest projects, to develop the Hyderabad rail metro network, at a cost of Rs 12,132 crore.

Next chief
Meanwhile, the board of directors wouldo be looking for the next chairman, as Naik is to retire in 2012. His successor would be announced six months before he retires. The company is already working with two consulting companies to search for its next leader.

“This process has seen the maximum attention of the entire board and me, too. After working in this company for so many years, I would want it to be led by a person who supports the growth of this company,” Naik assured the shareholders.

New Ipad Application :Business Standard's all new IPad App Click here to download for free Other Stories      - Markets end on a strong note - Nabard FY14 operating surplus soars 28% to Rs 1,635 cr - RBI eases banks' term deposit restrictions - NMDC Q4 net down 21.74% to Rs 1,642.28 cr - Balrampur Chini Q4 profit up by 15%

Tags : Larsen and Toubro | L&T Finance | A M Naik | RBI |   Read Business news in  Advertisements -  Journey on, We are by Your Side. Click here to know more -  2 Lac Apartments, 1 Lac House / Plots. Click here -  Help a Child Achieve her. Click to know more -  Benefits Upto Rs. 2.36 Lakhs on the Fully Loaded TJet Petrol. -  The Best Seller is Also the No. 1 in Mileage. Click here -  Watch The Film Here. Click here to know more.. -  Leader in Passenger Car & Automobile Tyres. Click here -  1 billion in saving for Unilever without any tangles. -  A Brand New Server at a Price That Fits Your Budget. Click here -  Learn How One City is Running on FOOD SCRAPS. -  One Partnership Endless Possibilities. Click here to know more -  Helping doctors detect diseases earlier, saving costs & extending lives. -  36 Lakhs can get you a pool of Luxuries. Click here -  Which is the best plan for your daughter -  Check out the TRUE COLOURS of your Stocks, Now for FREE! -  One of the leading business schools in the world.Know More