Bajaj Finserv all set to apply for bank licence

MUMBAI: The race for applying for banking licence has intensified with Bajaj Finserv, the holding company for the financial services businesses of the Bajaj Group, entering the fray.

While the company will be the promoter of the bank, the assets of its subsidiary Bajaj Finance – also known as Bajaj Finserv Lending – will be converted into a bank.

The Bajaj Finserv management confirmed to ET Now that it will be applying for a bank licence.

The company has been looking at banking business from a long-term perspective. It is sufficiently capitalized as of now and will comply with all the RBI norms.

Currently the promoter holding in Bajaj Finserv is at 58.9 per cent. Bajaj Finserv holds close to 62 per cent in Bajaj Finance. As per the RBI norms, the minimum public shareholding for the promoters should be at 51 per cent.

According to the management, if they get the approval for the license, Bajaj Finserv will have 18 months to meet shareholding norms post receiving in-principle approval and Bajaj Finance will have three years to meet the RBI shareholding norms for the banking entity.