Religare, M&M, L&T talk banks

A day after the Reserve Bank of India issued draft guidelines on new banking licences, Indian companies swung into action to put forward their case strongly before the RBI. Sachin Kumar reports.

A day after the Reserve Bank of India issued draft guidelines on new banking licences, Indian companies swung into action to put forward their case strongly before the RBI.

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Financial services firm Religare Enterprises, promoted by billionaire brothers Malvinder and Shivinder Mohan Singh said that the company has formed an advisory panel to guide the group's banking foray while Mahindra & Mahindra and Larsen and Toubro (L&T) said that they were also eligible to promote banks.

"With the formation of the advisory panel, we have re-affirmed our commitment to building a world-class bank in India," said Sunil Godhwani, chairman and managing director, Religare Enterprises. "The panel will help the Religare management team create a model that is innovative and commercially viable and meets all regulatory guidelines."

Corporate houses such as the Aditya Birla group, Mahindra & Mahindra, L&T, Bajaj and others had earlier evinced interest to start banking services.

"We are waiting for the final guidelines from the RBI. However going by the draft guidelines, we are eligible to promote a bank," said M Sivaraman, president and whole-time director, L&T Finance Holdings.

L&T chairman AM Naik had announced at the annual general meeting in 2010 that the group plans to foray into the banking sector.

According to experts, most corporates would like to open banks as it offers good potential.