 "IDFC to apply for banking licence")
Infrastructure finance company IDFC on Thursday said that it would apply for a banking licence.
“The board has taken a call to go ahead for a banking license,” Rajiv Lall, executive chairman, IDFC, said on Thursday.
IDFC is an infrastructure financing non-banking financial company (NBFC). According to analysts, NBFCs stand a brighter chance to get a bank license from the Reserve Bank of India (RBI). The RBI had released the much-awaited final guidelines on new banking licences in February.
“Meeting priority sector norms and financial inclusion as perceived by the RBI would be a challenge before the IDFC if it gets a license,” said an analyst.
“We would be able to share the size of IDF in the second quarter” Lall said.
Several other companies have launched or are looking to launch IDFs. ILF&S group and ICICI Bank have launched IDFs, while SREI Infrastructure Finance and L&T Infrastructure Finance are said to be launching IDFs in next few months.
“The board has taken a call to go ahead for a banking license,” Rajiv Lall, executive chairman, IDFC, said on Thursday.
IDFC is an infrastructure financing non-banking financial company (NBFC). According to analysts, NBFCs stand a brighter chance to get a bank license from the Reserve Bank of India (RBI). The RBI had released the much-awaited final guidelines on new banking licences in February.
Also Read
IDFC also said that it would launch an infrastructure debt fund (IDF) in the third quarter through the asset management company (mutual fund) route.
“Meeting priority sector norms and financial inclusion as perceived by the RBI would be a challenge before the IDFC if it gets a license,” said an analyst.
“We would be able to share the size of IDF in the second quarter” Lall said.
Several other companies have launched or are looking to launch IDFs. ILF&S group and ICICI Bank have launched IDFs, while SREI Infrastructure Finance and L&T Infrastructure Finance are said to be launching IDFs in next few months.
You’ve reached your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%