Mumbai: In a surprise move, Tata Sons, the holding company of Tata group, considered as one of the top contenders to bag the banking licence has withdrawn its application from the race.
However, it is said that the company would continue to monitor the developments in this space with great interest and looks forward to participate in the banking sector at an appropriate time.
The Reserve Bank of India, which is expected to issue licenses in Jan-uary 2014, had received applications from as many as 26 entities for commencing banking operation, which included firms, controlled by billionaires Anil Ambani and Kumar Mangalam Birla.
On a detailed evaluation of the ‘Guidelines for Licensing of New Banks in the Private Sector’ and analysis of the clarifications, Tata Sons said: “It has reached a conclusion that the group’s current financial services operating model best supports the current needs of the Tata group’s domestic and overseas strategy, and provides adequate operating flexibility to its companies, while securing the interests of the group’s diverse stakeholder base.
Tata Sons has therefore decided to withdraw its application dated July 1, 2013 from the current round of licensing,” Tata Sons said in a statement.
The group has, however, clarified that it remains committed to financial inclusion and believes that the groups existing financial services footprint uniquely positions it to provide technology excellence and access to India’s hinterland.
Earlier in September, the Reserve Bank had informed that Value Industries, a unit of Videocon Industries had also withdrawn its application.
The Reserve Bank of India had issued the guidelines for licensing of new banks in February 2013.
Other top contenders who are still in the fray includes Department of Post, IFCI and LIC Housing Finance from the public sector and Edelweiss Financial Ser-vices, L&T Finance, Indi-abulls Housing Finance, Religare Enterprises, JM Financial, Shriram Cap-ital and SREI Infrastruc-ture from the private sector.
