Tata Sons withdraws its bank licence application

Tata Sons has withdrawn its application for setting up a bank, saying its current financial services model best supports the needs of the group's domestic and overseas businesses.

The withdrawal by Tata Sons leaves over two dozen applicants, including Anil Ambani Group and Aditya Birla Group, in the race for new bank licences. Venugopal Dhoot's Videocon had also withdrawn its application a couple of months back.

"The company (Tata Sons) has indicated that its current financial services operating model best supports the needs of the Tata Group's domestic and overseas strategy, and provides adequate operating flexibility to its companies, while securing the interests of the group's diverse stakeholder base," RBI said in a statement.

The Reserve Bank has accepted the withdrawal of the application, it added.

Tata Group, in a separate statement, said it had written to the RBI yesterday, withdrawing its July 1 application for new bank licence.

"The company shall continue to monitor developments in this space with great interest and looks forward to participating in the banking sector at an appropriate time," it said.

In response to the RBI's call for application for new bank licences, 26 entities had applied by the last date of July 1, 2013. Following Tata Sons' withdrawal, 25 entities are left in the fray.