LIC HF to wait for RBI norms to decide on entering banking biz

LIC Housing Finance, a subsidiary of Life Insurance Corp, is interested in entering the banking business but would wait till the RBI issues its guidelines on the matter before taking a call, company  CEO R R Nair said.

"We are in-principle interested in the banking business but it is too premature to talk about it now. We will wait for the Reserve Bank guidelines on the issue before taking a decision," Nair told PTI here today.

The Finance Minister Pranab Mukherjee announced in the Budget that the government was open to allowing more private entities and NBFCs into the banking sector.

Following this, a host of NBFCs have evinced interest in foraying into the segment. Among those interested in entering the banking business are Reliance Capital, the Bajaj group, the Tata Group, the Aditya Birla Group, Kerala's Muthoot Group and the Rhriram Group.

The last time fresh banking licences were issued in 2003 Nair said LIC HF would have to see if it fitted into the guidelines to be issued by the RBI.

"If there is an opportunity and if we are eligible, then we will look at it. We will exercise our option of whether to enter banking or not, then," Nair said.

The company was known for its speedy decision-making and should it decide to enter banking, then it could do so quickly, he said.

"Our machinery has the capability to move fast — our decision-making process is speedy. However, we will have to study the guidelines before taking any decision," he said.