Anil Ambani says exploring setting up 'Reliance Bank' | Latest News India - Hindustan Times
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Anil Ambani says exploring setting up 'Reliance Bank'

PTI | By, Mumbai
Sep 27, 2011 04:16 PM IST

Industrialist Anil Ambani today said that his group's financial services arm Reliance Capital will explore all possible opportunities to enter the banking sector and plans to unlock value in all its major businesses.

Industrialist Anil Ambani on Tuesday said that his group's financial services arm Reliance Capital will explore all possible opportunities to enter the banking sector and plans to unlock value in all its major businesses.

Anil-Ambani-chairman-of-Reliance-Anil-Dhirubhai-Ambani-Group-during-the-annual-general-meeting-of-Reliance-Capital-in-Mumbai
Anil-Ambani-chairman-of-Reliance-Anil-Dhirubhai-Ambani-Group-during-the-annual-general-meeting-of-Reliance-Capital-in-Mumbai

The banking entity of the group could be called Reliance Bank, Ambani told the shareholders of Reliance Capital.

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Replying to shareholders' queries on whether the company would consider the issue of bonus shares and a special dividend, Ambani said he would take these proposals to the board.

Shares of Reliance Capital were trading strong and rose by over 5% to Rs 411.40 in late morning trade.

Speaking at the Annual General Meeting of the company here, Ambani, the Chairman of Reliance Capital, said growth has so far been achieved mostly through the organic route.

Hinting at the inorganic route for future growth, Ambani said: "Our strategy is now to unlock value from all our major businesses for the benefit of our 1.3 million shareholders."

Earlier this year, Reliance Capital signed a deal with Japan's Nippon Life for sale of a 26% stake in Reliance Life Insurance for over Rs 3,000 crore in the country's largest-ever finance services sector FDI transaction.

Recently, Reliance Capital has also signed a Memorandum of Understanding with Nippon Life for evaluating collaboration opportunities -- including a strategic partnership -- across all Reliance Capital-promoted financial businesses.

Ambani said that the talks for a stake sale in its asset management business to Nippon were also in advanced stages. In addition, the company would consider a stake sale in other businesses, like general insurance, as well.

Reiterating the group's interest in setting up a bank, Ambani said that banking was a new growth opportunity and it would evaluate opportunities to enter this high growth sector.

It was keeping track of all regulatory developments on this front, he said, adding that significant under-penetration of financial products and services in India would continue to create immense opportunities for future growth.

The company also plans to take its asset management businesses to other emerging markets and would look at further expansion of its wealth management and private equity businesses, Ambani said.

"From a single business of nominal scale in 2005, we are pleased to have established multiple businesses across the entire spectrum of financial services," Ambani said.

He said that Reliance Capital has become the country's largest NBFC, with a net worth of nearly Rs 8,000 crore, more than two crore customers and 8,000 offices across the country with a staff strength of over 18,000 people.

"Despite being a late entrant, Reliance Capital has achieved leadership position in all its major businesses in a highly competitive business environment," he said.

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