Having submitted a detailed business plan to the Reserve Bank of India (RBI) in June for a differentiated bank licence, Chandigarh-based KC Land & Finance plans to cater to farmers, NRIs and small & medium enterprises (MSMEs) in Punjab.
It is worth mentioning that RBI is working on modalities for differentiated banking licences. Firms with differentiated bank licences face operational restrictions in terms of geographical reach and product variety. KC Group, which has three verticals - hospitality, real estate and educational institutes - besides a finance company, has been added by the Reserve Bank of India in the list of names that had applied for a banking license, three months after the cutoff date.
Speaking to Business Standard, Prem Pal Gandhi, chairman and managing director, KC Group said, "We are keen to operate on a regional level with a special focus on farmers, NRIs and SMEs. We are from a rural background and have a strong foothold in the rural market. There are certain areas in Punjab where bank branches or business correspondent model is yet to be operational. We will target these areas and bring more people under the banking ambit which can help spur the regional economy."
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CEO Vikas Sharma said, "The banking sector faces the challenge of penetrating into the financially under-serviced rural regions where the majority of the population does not have bank accounts. In addition, Micro, Small and Medium Enterprises (MSMEs) are at a disadvantage in obtaining loans from banks. In addition, we are planning to target NRIs hailing from Punjab. We have a strong presence in Punjab, Haryana, Chandigarh and Himachal Pradesh. We request them to allow us to operate on the regional level initially."
Being one of the aspirants, Sharma said, "If given a licence, we would commence operations in the villages of Doaba region in Punjab. So, operating in these areas will help bring funds in the economy. Initially our plan is to focus on the rural sector through self help groups and microfinance as this will help meet the financial inclusion norms."
