Will be interested in banking licence: Reliance Capital

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Will be interested in banking licence: Reliance Capital

Sam Ghosh, Chief Executive Officer of Reliance Capital, said that if a banking opportunity arises, the company would like to get into banking. “We have to await detail guidelines on banking license,” he added.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » RELATED NEWS Reliance Cap, IFCI await guidelines on banking license ALSO READ See latest News about Rel Capital See previous management interviews See what other Experts & Brokerages are saying about Rel Capital Rel Capital BSE | NSE 30/05/12 Are Mutual Funds betting on Rel Capital? Other Stocks in this news Infrastructure Development Finance Company |

Finance Minister did his bit for the Indian banking system on the Budget day. He said that Reserve Bank of India (RBI) is considering giving some additional banking licenses to private sector players. Non Banking Financial Companies (NBFCs) could also be considered, if they meet the RBI's eligibility criteria. Reliance Capital was the first stock to shoot up when the finance minister made that statement.

Talking about the same, Sam Ghosh, Chief Executive Officer of Reliance Capital , said that if a banking opportunity arises, the company would like to get into banking. "We have to await detail guidelines on banking license," he added.

Here is a verbatim transcript of an exclusive interview with Sam Gosh on CNBC-TV18. Also watch the accompanying video.

Q: Would you be interested in becoming a bank?

A: At this point, we have to await RBI's (RBI) detailed guidelines, only then can we think about which way to go forward. Obviously it is a good sign that finance minister raised the issue at the Budget. It is positive for non-banking financial companies (NBFCs). There is an opportunity to get into it but until RBI comes out with the guidelines, as you know the devil is in the details. Let us wait and see what happens there.

Q: IDFC flatly refuses to become a bank. Does Reliance Capital want to become a bank?

A: You may have heard our Chairman's statement sometime back at the AGM. He had mentioned that certainly if a banking opportunity arises, we would like to get into banking.

Q: Does Reliance Capital already have some kind of letter pending with the RBI in seeking that kind of a license?

A: No, we don't at this stage. Some of the corporates already have one, but we certainly haven't applied for anything.

Q: There seems to be one loophole which is that the RBI frowns upon large corporate houses getting into banking as a space. How do you think that might be circumvented even if the government relaxes norms for NBFCs to go the bank way?

A: That is why I mentioned that we have to wait for RBI's guidelines. Unless we know exactly which way that goes forward then only can we decide can we apply for a banking license or not.