Videocon to throw its hat in banking licence ring

The group had set aside Rs 1,000 cr for the banking foray

The list of those interested in opening new banks seems to be growing. Now, the Videocon group has said it is ready to approach the Reserve Bank of India (RBI) for a banking licence.

Videocon group Chairman Venugopal Dhoot said the group had a 10-year track record. The group had set aside Rs 1,000 crore for the banking foray, he said, adding the group would scout for an international partner for the venture. For its non-life insurance foray, the group has tied up with Liberty Citystate Holdings, part of the US-based Liberty Mutual Insurance group.

On those involved in the ground work, Dhoot said eminent retired bankers were assisting in charting the course. He, however, declined to name those bankers.

In its final norms on new bank licences, RBI had prescribed a capital base of at least Rs 500 crore. It has said those interested in applying for a licence should do so by July 1. RBI would apply stringent regulatory controls, including a capital adequacy level of 13 per cent for new banks. It would closely track the record of the new banks for a certain period.

Business houses and non-banking financial companies that have evinced interest to enter the banking space include Tata Capital, Aditya Birla Group, L&T Finance Holding, Sriram Capital group, Srei and Religare Enterprises.