Twitter
Advertisement

Inmacs' banking drive shows a rural tint

Banking licence hopeful wants to open half its branches in countryside.

Latest News
article-main
FacebookTwitterWhatsappLinkedin

Inmacs Management Services, the little-known banking aspirant, seems to be laying its groundwork for banking pretty seriously. In its application to the Reserve Bank of India (RBI) earlier this month, the consultancy firm has proposed to open half of the proposed Arihant Bank’s branches in rural areas, a senior company official told dna.    
  
A surprise entry, this Gurgaon-based company, headed by chartered account Vinod Jain, is up against the likes of the Tatas, the Birlas and the Ambanis, and there are 26 aspirants jostling for this once-a-decade lottery. It was back in 2004 when two licences were awarded to Yes Bank and Kotak Mahindra for carrying out banking operations.

Inmacs has proposed to open less than 50 branches in the first year of going on stream, and follow it up with a similar number in the second year, the official said, who did not want to be identified. The RBI mandates new banks to open at least one-fourth of their branches in rural pockets.

While the bank will focus on hand workers, women, tribals, and small and micro enterprises in far-flung areas, small and medium enterprises and large corporates form its target group in urban chunks. In its submission, Inmacs has talked about 70-80 loan products.

The entity wants to stay off retail loans as the segment is “already crowded”. Inmacs has also named a few Indian investors who would be putting money in its proposed bank and hopes to break even in the second year of operation, the official added. The RBI has asked for a minimum capital requirement of Rs 500 crore.

Inmacs has previously worked as auditors and consultants with several banks in India and handled credit monitoring and credit appraisal too. The RBI is expected to issue new banking licences by the end of this financial year.

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement