IIFL group pitches for banking entry

Tags: Banking, IIFL
The IIFL group has made a strong pitch for letting brokerages enter the banking

RELATED ARTICLES

fray, saying its success with 4,000-odd branches gives it the necessary bandwidth to replicate the same in commercial banking.

"I am confident that we at the IIFL, with our over a decade of experience and a nationwide footprint, can replicate the success we have had in the financial services space, in the banking arena, too, if the RBI allows us to enter the space.

"I am confident each of our over 4,000 branches spanning 900 locations can be converted into a bank," IIFL group Chairman Nirmal Jain told PTI here.

The city-based brokerage and NBFC player is keen on applying for banking licence as soon as the Reserve Bank invites applications, which may happen early next fiscal. The regulator is set to issue the final guidelines on new set of private banks anytime from now.

To a query on what will be his focus area--large cities or rural areas--if given allowed to set up bank, Jain said the latter (non-metros), as opportunities are much more in semi-urban and rural markets.

"My focus will not be the metros or the large cities, which are over-crowded. I am very confident that I can do an encore of my NBFC and brokerage success in commercial banking too by focusing on the non-metro markets," Jain said.

Whether the group has enough financial muscles to run a bank and also could meet the strict entry norms, Jain answered in the affirmative.

"None of my business verticals is making losses, including the broking arm, which is witnessing an erosion of margin due to market volatility and poor volume. Since we are not an over-leveraged company, we can easily raise more than enough funds."

Arguing that execution is the key for success in any field, including banking, Jain said, "If with 1-2 bps margin, down from 100-120 bps a few years ago, brokerages are making money today, better technology and innovation can help run a successful bank at half the cost which is being charged today."

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • The survey paints an optimistic future, but sees little scope for a bang

    The Economic Survey, which comes out a day before the Union budget, is widely regarded as its forerunner, an indicator of things to come 24 hours late

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Urs Schoettli

The hidden attractions of Japan

We live in the Asian century. During the past two ...

Zehra Naqvi

Star power

Being a part of the generation that gorged on Shah ...

Bubbles Sabharwal

The waking moment decides the day

There was a little girl/ Who had a little curl/ ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture