Reliance Capital to apply to RBI for Banking License

Reliance Capital Limited will be submitting an application for a banking license with the Reserve Bank of India (RBI). Reliance Capital will be the promoter of the proposed new bank.

Sumitomo Mitsui Trust Bank and Nippon Life Insurance, two leading financial institutions from Japan, propose to take between 4 - 5% stake each in the proposed new bank, subject to necessary regulatory approvals, etc.

The agreements were signed by Mr. Sam Ghosh, CEO, Reliance Capital; Mr. Kuniyuki Shudo, General Manager, Global Business Planning and Coordination Department, Sumitomo Mitsui Trust Bank; and Mr. Hiroyuki Nishi, Director & Executive Officer, General Manager of International Planning and Operations Department, Nippon Life Insurance.

"Reliance Capital is delighted to partner with two of Japan's largest firms - Sumitomo Mitsui Trust Bank and Nippon Life Insurance - for our proposed new bank," said Mr. Ghosh.

"Sumitomo Mitsui Trust Bank is amongst the largest banks in Japan, and the largest institutional investor in the country. SMTB has vast experience in retail and institutional banking, and we look forward to their long term contribution in building the proposed bank as our strategic partners. We are also extremely happy to extend our relationship with Nippon Life Insurance, our valued partner in our life insurance and asset management business, to the proposed new bank," said Mr. Ghosh.

"We are very pleased to start a partnership with Reliance Capital, one of India's leading financial institutions with a solid presence, a wide range of business activities and excellent business performance. We, at Sumi Trust, are the largest trust bank with the longest history in Japan, and have much experience and enjoy outstanding results in the banking and trust businesses. We hope to contribute toward the development of the Indian financial industry through our collaboration with Reliance Capital, which we believe will be a very successful one", said Mr. Hitoshi Tsunekage, CEO, Sumitomo Mitsui Trust Bank.

""The establishment of the new bank is a very significant project for Reliance Group and we are delighted with our participation. It represents the strong partnership between the two groups, which we hope to strengthen further going forward. The project has been taken under consideration in light of the promotion of Financial Inclusion by the Indian government and the Reserve Bank of India. We believe that it has great social significance as it will contribute to the further development of the Indian economy and financial infrastructure", said Mr. Yoshinobu Tsutsui, President, Nippon Life Insurance.

Shares of Reliance Capital Ltd was last trading in BSE at Rs.336.40, up by Rs.12.20 or 3.76%. The stock hit an intraday high of Rs.338.60 and low of Rs.328.20.

The total traded quantity was 7.62 lakhs compared to 2 week average of 8.92 lakhs.

Source : Equity Bulls

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