Kirloskar group gets RBI nod for NBFC biz; to invest Rs1,000cr

The Kirloskar group Thursday said that it has received licence from the Reserve Bank to launch a non-banking finance company (NBFC), Kirloskar Capital, which will be headed by industry veteran Vimal Bhandari.

The group company said it will invest Rs 1,000 crore in the proposed NBFC, which will be a fully-owned subsidiary of Kirloskar Oil Engines, and will focus on providing growth capital to industry with an initial focus on small and medium enterprises (SMEs).

"Kirloskar Capital will be well capitalised with a capital commitment of Rs 1,000 crore over the next three years. The NBFC will be led by Vimal Bhandari as the chief executive," the company said in a statement.

Commenting on the RBI licence, Atul Kirloskar, chairman of Kirloskar group, said, "We are enthused by the RBI green signal and excited to start the business, which will reflect what we have been traditionally - conservative but solid - and ready to grow."