Starting a new bank easier than converting an NBFC into one: Umesh Revankar

In a Q&A, the MD of Shriram Transpport Finance, which has an AUM of Rs 1.13 trillion, explains why his company is in no hurry to acquire a banking licence

The Reserve Bank of India’s (RBI) working group on private bank ownership has paved the way for the conversion of large non-banking financial companies (NBFCs) into banks. It has proposed that well-run NBFCs that have operated for a minimum of ten years be allowed to convert if they clear due diligence. Umesh Revankar, MD, Shriram Transport Finance speaks to T E Narasimhan about the challenges in converting a NBFC to a Bank and why his company, with an AUM of over Rs 1.13 trillion, is not in a hurry to become a bank. Edited Excerpts:

How will the RBI's working group