IDFC group to pick up stake in Future's payment bank

Future had earlier owned an NBFC named Future Capital now called Capital First

IDFC group is in talks with Kishore Biyani's Future group to pick up 19.8% stake in the latter's proposed payment bank, said a executive in the know.

"IDFC's banking arm will pick up the stake in the Payment Bank if Future group gets a license for the same from RBI," the executive said. Future group is planning to apply for the payment bank on Monday (January 2), according to sources in Future group.

Kishore Biyani and IDFC executives could not be reached for comments.

Future group has already expressed its desire to apply for the payment bank while other retail group's have not shown much interest so far.

“It (a payment bank) is an interesting proposal. We already have a large customer base and it will be an additional service for our customers," Biyani told Business Standard in July last year.

Future had earlier owned an NBFC by the name of Future Capital (now called Capital First); it was later sold to Warbug Pincus. Future Capital had a plan to set up financial supermarkets, to sell credit cards, insurance and other financial products.

The executive quoted earlier said apart from charging transaction fees, the group would  benefit in the form of customer additions, growth in its business and so on. They deal with 30 crore customers in over 100 cities. They can easily do money transfer and deposit taking. We already have the space and set-up in place,” the executive said.

Kishore Biyani led Future group serves 300 million customers trhough 315 stores. It posted revenues of Rs 11,366 crore last financial year.

IDFC and Bandan were given in principal license in April last year and given 18 months time to start banking operations.