SREI Infra Finance to apply for banking licence

On Monday, the company decided to submit application to Reserve Bank of India for obtaining banking licence

With the July 1 deadline to apply for bank licence is nearing fast, more corporate groups seem to be jumping in the fray. The latest aspirant being is the leading infrastructure finance company -- SREI Infrastructure Finance Ltd.  

On Monday, Directors of the Company decided to submit application to the Reserve Bank of India (RBI) for obtaining banking licence, said a company statement. It will make an application to the RBI for a banking licence, in accordance with the provisions of the Guidelines for Licensing of New Banks in the Private Sector dated February 22, 2013, the company informed the Bombay Stock Exchange (BSE).

 
Earlier, Edelweiss Financial Services Ltd also said its board of directors has approved a proposal to apply to Reserve Bank of India for setting a new private bank. It will transfer its existing merchant banking business to subsidiary as a step to comply with norms prescribed by RBI for new banking licence.

Other players who are interested for banking licence include JM Financial in collaboration with Vikram Pandit (ex-Citi Bank chief), Infrastructure finance entity IDFC, Religare Enterprises and Tourism Finance Corporation of India (TFCI).

With a customer base of over 30,000 and over  33,300 crore of consolidated assets under management (AUM), Srei has a pan-India presence with a network of 84 offices, according to company website. SREI has a partnership with the Tata Group through Viom Networks Limited for shared passive telecom infrastructure and BNP Paribas for Equipment Financing.