Shriram group to set up new firm for bank

Chennai-based Shriram Group, which has presence in consumer finance, commercial vehicle lending, insurance, retail stock broking and real estate, and with revenues close to Rs 13,900 crore, will set up a new company to apply for a banking licence. Sachin Kumar reports.

Chennai-based Shriram Group, which has presence in consumer finance, commercial vehicle lending, insurance, retail stock broking and real estate, and with revenues close to Rs 13,900 crore, will set up a new company to apply for a banking licence. All its financial service companies will come under this new holding company.

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"Our plan is that we should have a new entity under Shriram Capital that will apply for banking license," Arun Duggal, chairman, Shriram Capital told HT. "All the financial services businesses, including the bank, will be under this company."

Shriram Capital is the holding company of the group's financial services business including Shriram Transport Finance, Shriram City Union Finance and the life and non-life insurance.

Though, Shriram group will make a fresh start by setting up a new company but it will bet on its existing workforce to run the bank.

The group believes that RBI's emphasis on financial inclusion will work in its favour. "Our client base is middle class and lower middle class people," said Duggal. "If we are given the license, most of our business will come from people living in semi-urban and rural areas."