Saitomo Financial Services Private Ltd, a joint venture non-banking finance company (NBFC) promoted by Sumitomo Corporation of Japan and Sai Services Station Ltd (SSSL), has obtained a registration certificate from the Reserve Bank of India (RBI) for commencement of operations as an NBFC.
Saitomo is among the 140 NBFCs which have obtained fresh NBFC registration from the RBI so far. The new company is likely to enter into the area of car finance, RBI sources said. However, as per the RBIs directives for newly set up NBFCs, the company will not be able to raise public deposits for the first two years of its operations.
The proposed paid-up capital of the new company is estimated at around Rs 33 crore of which SSSL will subscribe to around 50 per cent. Sources close to the promoters said that the deal was finalised by the audit firm C C Choksi. RBI officials said that the registration was granted to the company on the basis of the track record of its promoters. SSSL is primarily in the business of selling automobile and automobile spare parts, as well as renting of vehicles. In the financial year 1996-97, it showed a profit after tax of Rs 220.71 lakh, which however, was lower that the previous years figure of Rs 462.51 lakh.
Sumitomo Corporation of Japan is a financial services major worldwide. Presently, its operations in India include banking under Sumitomo Bank. With this venture, it will enter the NBFC arena also.
The RBI has of date, granted registration to over 140 companies in various centres across the country. In Maharashtra, the RBI has issued fresh licences to around nine companies so far, of these three of which are new. The new companies include Saitomo Financial Services in Pune, Citicorp Financial Services, promoted by Citibank NA, in Mumbai, and Praptee Savings promoted by Subhash Patil in Nagpur. The remainder are all public sector companies including primary dealers namely, STCI, Discount and Finance House of India, SBI Gilts, SBI Factors, and BOB Capital.
