New Banking Licenses – Update – Tata Sons withdraws Application for New Bank

Reserve Bank of India, vide a Press Release has today communicated that Tata Sons Limited has withdrawn its application made on July 1, 2013 for a new bank licence.

The company has indicated that its current financial services operating model best supports the 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.

The Reserve Bank has accepted withdrawal of the application.

Tata Sons in a statement said, “On a detailed evaluation of the ‘Guidelines for Licensing of New Banks in the Private Sector’ and analysis of clarifications thereto, Tata Sons has reached a conclusion…After prolonged deliberations and detailed analysis, Tata Sons has therefore decided to withdraw its application dated 1 July, 2013, from the current round of licensing.”

It further said, “The Company shall continue to monitor developments in this space with great interest and looks forward to participating in the banking sector at an appropriate time.”

On September 6, Value Industries, a unit of diversified conglomerate Videocon Industries had also withdrawn its application.

Readers might recall that on July 1, a total of 26 companies including big private corporates such as Tata Sons, Aditya Birla Nuvo, Reliance Capital and L&T Finance Holdings had applied for new bank licences.

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