Reliance Bank after RBI finalises guidelines: Anil Ambani

Reliance Capital, the financial services arm of the Anil Dhirubhai Ambani Group (ADAG), will consider setting up a bank after the necessary regulatory changes are made by the central bank, besides unlocking the value of other businesses.

Anil Ambani, chairman, Reliance Capital, told shareholders at the annual general meeting of the company in Mumbai on Tuesday that it would consider making a foray into the banking sector, after the Reserve Bank of India (RBI) finalises the guidelines pertaining to licences to be issued to new banks. The new venture would be called Reliance Bank, he added.

''Banking is a new growth opportunity,'' said Ambani. ''We will evaluate opportunities to enter this high growth sector and are keeping track of all regulatory developments on this front. Significant under-penetration of financial products and services in India will continue to create immense opportunity for our growth. We will expand our asset management group in emerging markets and grow our wealth management and private equity business.''

Ambani revealed that the company's strategy now was to unlock value from all its major businesses. Earlier this year, Reliance Capital signed a definitive agreement for the sale of a 26-per cent stake in Reliance Life Insurance for about Rs3,000 crore to Japan's Nippon Life.

The proceeds of the sale would help Reliance Capital to restructure its debt, added Ambani.

It also signed a memorandum of understanding with the Japanese major for evaluating opportunities for collaboration across various segments in the financial services sector, including through a strategic partnership. It is also in discussions with the Japanese company regarding a stake sell in Reliance Mutual Fund.