The Chennai-based $4.4 billion Murugappa Group, which was one of the business conglomerates shown interest for banking licence, said that it will examine the guideline which was released by RBI today to start a Bank.
N Srinivasan, Director-Finance of the Murugappa Group said that “we have to examine this. The guidelines have come, obviously no individual can take a decision, it has to go to the Board we have to take a decision and then evaluate clearly whether this is good or bad, then only we will come to a view”.
He added, this is not a wish or anything like that. So, I believe it is good to become a bank and therefore we will apply-we cannot go just like that.
On the new guideline, which runs to about 20 pages, there are restrictions on how you have to structure, how shareholding has to be brought down to 15% over 10 years period, lot of things are there. Those aspects have to be critically examined by the promoters and by the Board. Then only we will be able to come to a view. We will certainly examine this, said Srinivasan.
The Murugappa Group has its origins in 1900 and a majority of its business portfolio mirrors the economy. The businesses include agriculture, industry and financial services.
Headquartered in Chennai, the Rs 22,314 crore ($4.4 billion as on March 31, 2012) Murugappa Group is one of India's leading business conglomerates. Market leaders in diverse areas of business including Engineering, Abrasives, Finance, General Insurance, Cycles, Sugar, Farm Inputs, Fertilizers, Plantations, Bio-products and Nutraceuticals, its 28 businesses have manufacturing facilities spread across 13 states in India.
The Group's NBFC arm is Cholamandalam Investment and Finance Company Ltd which increased its profit to Rs 81.51 crore during the third quarter as against Rs 40.56 crore for the same period of the previous fiscal. The total income stood at Rs 669.46 crore for the quarter ended December, 2012, as compared to Rs 476.11 crore for the same period of previous fiscal year, an increase of 40.61%.
The market for its focus segment, the light commercial vehicles, has been growing and the company has posted a growth in disbursement.
The company has disbursed Rs 2574 crore in vehicle finance during the quarter as against Rs 1915 crore disbursed during the same period of last fiscal year, which is an increase of 34.41%. It has disbursed Rs 525 crore in home equity loan for the third quarter of the current fiscal, as compared to Rs 368 crore in the same quarter of previous fiscal year.
The Gold Loan disburement, which started in December, 2011, was at Rs 14 crore while the disbursement during the same period of 2011-12 was Rs 0.5 crore. The Company launched its home loan business during the later part of the quarter and disbursed Rs 0.60 Crore during the quarter, announced the company.
