Banking licence to help expand rural business: Srei
Hopeful of making banking foray, financial services group Srei has said that bank licence would help expand its rural business.
Srei Infrastructure Finance, a listed company, is among 25 applicants seeking new banking licences.
"Banking licence will help us expand our rural business," Srei chairman and managing director Hemant Kanoria told PTI.
It would also open a new line of business for the group, he added.
Earlier this year, Kanoria had said that Srei has around 28,000 rural centres in different parts of the country and some of them could be converted into bank branches if it gets a banking licence.
The central bank had issued guidelines for new bank licences in February this year and clarifications in June.
In the past 20 years, RBI had given licences to 12 banks in the private sector in two phases. Ten banks were given licences on the basis of guidelines issued in January 1993.
The norms were revised in January 2001 and after that Kotak Mahindra Bank and Yes Bank received licences during 2003-04 period.
Srei, which already has a strong rural presence, has interests in diverse segments including equipment financing, project advisory and insurance broking.
On overall business strategy, Mr Kanoria said the group is open for inorganic growth opportunities in power and roads sectors, among others.
Currently, it has strategic investments in various segments, including transportation, telecom infrastructure and power.
Srei Infrastructure Finance's consolidated profit after tax touched Rs 41.24 crore in the three months ended September this year. During the same period, total consolidated assets under management rose to Rs 34,754 crore.
