New Bank License: Tata Sons withdraws application for banking licence.
The Reserve Bank of India (RBI) said in a statement that Tata Sons Ltd has withdrawn its application for a new bank licence.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,” RBI said in a statement today.
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 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.