Anil Ambani group company Reliance Capital is expected to once again apply for a bank licence. The group said in a statement that it would participate in the financial inclusion mission of the Narendra Modi government by setting up Reliance Bank, which would cater to individual customers and small, mid-size enterprises through its parent group’s network. The group also said Nippon Life Insurance will also participate in the proposed bank by picking up equity stake in the venture. The Japanese company has already picked up 26% stake in Reliance’s life insurance and asset management businesses. However, it is not clear if Reliance Capital will be interested in a universal bank or a differentiated bank licence. The banking regulator has recently released draft norms for small banks and payment banks that will focus on a niche segment. Reliance Capital had applied for universal bank licence but did not succeed. The company then said Sumitomo Mitsui Trust Bank, one of the largest banks of Japan, and Nippon Life Insurance would take between four-five per cent stake each in its proposed venture.
