NEWS

Indian IT companies chase banking licence hopefuls

MUMBAI: Technology services providers are already in talks with business houses that have applied for banking licences, hoping to build long-term relationships with these companies which could enter the Indian banking industry next year.

As many as six licences could be issued, making it a persuasive enough opportunity for information technology firms to gear up their sales and marketing departments. “It is an opportunity for a whole lot of players. You have the product companies and the outsourcing companies which would look to position themselves for this.

And any organisation that gets a licence will want to accelerate the roll-out, so incumbents will have an advantage,” said Ernst & Young Technology Sector Leader Milan Sheth. It is after more than a decade that the Reserve Bank of India (RBI) is opening up the window for banking licences and a total of 26 applicants, from brokerage houses and Non-Banking Financial Institutions (NBFIs) to industrial houses and micro-finance firms, have thrown their hats in the ring. Besides large conglomerates such as the Tatas, Birlas, Reliance ADAG, others in the race include India Post, L&T, Edelweiss and Muthoot.

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