Mumbai, June 26 (IANS) Anil Ambani-led Reliance Capital Wednesday said it will apply for a banking licence, in which two Japanese firms will be minority partners.
Reliance Capital will be the promoter, while the Japanese financial giants Sumitomo Mitsui Trust Bank and Nippon Life Insurance will control between four to five percent stake each in the proposed new bank.
Anil Ambani-led Reliance Group firm has signed partnership agreements with the two Japanese firms.
“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,” Reliance Capital chief executive officer Sam Ghosh said in a statement.
The company is likely to submit its application for new banking licence with the Reserve Bank of India (RBI) by July 1, which is the deadline set by the central bank.
Ghosh said the Japanese firms would give long-term contributions in setting up the new bank.
Sumitomo Mitsui Trust Bank is among the largest banks in Japan, and the largest institutional investor in the country. It has vast experience in retail and institutional banking.
“We look forward to their long-term contribution in building the proposed bank as our strategic partners,” Ghosh said.
“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,” he said.
“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,” Hitoshi Tsunekage, chief executive officer, Sumitomo Mitsui Trust Bank, said in a statement.
Reliance Capital is already doing business with Japan’s largest private life insurer Nippon Life. The Japanese insurer controls 26 percent stake in Reliance Life Insurance as well as Reliance Asset Management Company, the two entities of Reliance Capital.
“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,” said Yoshinobu Tsutsui, president, Nippon Life Insurance.
“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,” Tsutsui said.