Reliance Capital, the financial services arm of Anil Ambani-led group, today said it has got sufficient resources for entering the banking sector and it is awaiting regulatory guidelines to make the move.
RCap would explore significant opportunities in banking business, where it is awaiting final regulatory guidelines, CEO Sam Ghosh said in a presentation before the company's shareholders at the AGM here today.
Ghosh said RCap has sufficient capital available for its foray into banking.
"All our businesses are suitably capitalised and no business requires further growth capital. Adequate funds are available for new ventures such as entry into the banking space and for reduction in consolidated debt," he said.
The Reserve Bank issued draft guidelines in August 2011 for issuance of new banking licences, while in July 2012 it released the comments and suggestions received by it. However, a final regulatory word in this regard is still awaited.
RCap, as also various other private players, are eyeing a banking licence for a long time.
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Speaking at the RCap AGM last year, Ambani had said that the group's banking entity could be called 'Reliance Bank'.
Ghosh said India is a major growth opportunity and the financial services market is set to grow exponentially.
Listing out other growth opportunities, Ghosh said, RCap is evaluating expansion of businesses in distribution, wealth management, investment banking, private equity and asset management into other emerging markets.
Low penetration of mutual funds, insurance services, mortgage loans and equity markets among others indicate untapped potential and underlying growth opportunity, he said.
Listing out plans for the next five years, he said there would be multi-fold growth in the company's distribution reach, customer base and number of business partners.
Talking about various businesses, Ghosh said Nippon Life has acquired 26% in Reliance Life Insurance, making it largest FDI in the Indian financial services space with an investment of over Rs 3,000 crore.
Besides, Nippon Life has bought 26% stake in Reliance Capital Asset Management for 1,450 crore in the largest investment in the Indian AMC sector till date.
Reliance Life has achieved first full-year profitability in the shortest time span in the life insurance industry, while the group has also got the country's largest and most profitable asset manager with total AUM of Rs 1.41 lakh crore.
The number of Reliance Capital customers has growth from 6 lakh in one business in 2005 to 230 lakh at six businesses in 2012.
The total income in this period has grown 15 times to Rs 6,600 crore, while assets has seen a 12-fold rise to Rs 35,300 crore, he said.