Aditya Birla Nuvo to seek licence from RBI for setting up bank
New Delhi: Aditya Birla Nuvo on Tuesday said it will apply to Reserve Bank of India (RBI) for seeking a bank licence.
The board of the company has approved the proposal of making an application to the RBI for obtaining licence for setting up bank in accordance with the guidelines issued by the central bank for licensing of new banks in the private sector, Aditya Birla Nuvo said in filing on the BSE.
Shares of the company closed at Rs 1,033.25 per unit, down by 1.01 percent on the BSE.
Earlier this month, RBI while issuing clarification on new bank licence guidelines said, the entities getting licences to open new banks will be given 18 months to open branches against 12 months prescribed earlier, and promoters would have to transfer their holdings to the non-operative financial holding company (NOFHC) in a stipulated period.
The NOFHC envisages holding of the bank and other regulated financial services entities of the promoters under the NOFHC and prudential exposure norms for the regulated entities.
India has 26 public sector banks, 22 private sector banks and 56 regional rural banks.
Ten banks were licenced on the basis of guidelines issued in January 1993. The guidelines were revised in January 2001 based on the experience gained from the functioning of these banks, and fresh applications were invited.
Of the 10 licences issued in 1993, four banks merged with other lenders over a period of time. Times Bank merged with HDFC Bank, while Global Trust Bank was amalgamated with the state-owned Oriental Bank of Commerce.
Centurion Bank took over Bank of Punjab to become Centurion Bank of Punjab, which merged with HDFC Bank in 2008.