Reliance Capital and Nippon Life Insurance have partnered to jointly start a banking venture in India after necessary approvals.
The proposed bank would cater to individual customers and small, mid-size enterprises.
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Last year, Reliance Capital was among the 26 firms that had applied for new bank licence. However, the country’s central bank RBI issued licences only to IDFC Ltd and Bandhan Financial Services in April.
Subsequently, the RBI had come out with draft guidelines for setting up of two new categories of lenders — payment banks and small banks — in July this year.
Reliance Capital did not spell out the details as to which specific type of bank it would be interested in. A statement from the company read that the bank will be set up under appropriate category of licences to be issued by the RBI.
The Japanese insurer has a 26% stake in Reliance Capital Asset Management (RCAM), the mutual fund arm of Reliance Capital and owns 26% in Reliance Life Insurance.
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By GlobalDataNippon Life Insurance (NLI) president Yoshinobu Tsutsui said, "NLI is also participating in this bank project as part of strategic business alliance with a view to improve the financial infrastructure and contribute towards economic growth of India."
Meanwhile, NLI’s Nissay Asset Management and Reliance Capital Asset Management have launched two new mutual funds, short-term Indian bond fund and India equity selection fund, for Japanese retail investors.
The announcements coincided with Narendra Modi’s first official visit to Japan as Prime Minister.
