It is easier to start and build banks rather converting large NBFCs into banks: Umesh Revankar – ET BFSI


The Internal Working Group (IWG) of the Reserve Bank of India (RBI) had last week proposed the entry of corporates into the banking system and conversion of big NBFCs into banks.In an interview to ETNow, Umesh Revankar, MD & CEO, Shriram Transport Finance, said, “It is a very significant move considering that corporate owned or corporate operated NBFCs and also the other NBFCs of large size can convert themselves into banks and provide the entire range of services that banks give.”

He further noted India needs more banks because the size of the country and economy is growing and we need more banks to come forward to give service to the customers.

“My feeling is that it is easier to start and build banks rather than to convert large NBFCs into banks. However, if RBI gives guidance and support, everything is possible and probably we can give more service to the customers in whatever bandwidth we have,” he added. While discussing the recovery in demand, he commented the recovered is as per their expectation, however, it has not exceeded expectations.

“We always felt that the festival may not really create big demand but the following festival, the harvesting period will create a demand because we had a good kharif crop and a good rabi crop is expected and everyone in the rural and semi urban areas are waiting for the harvesting period in December and January. If there is more cash in rural India, if they are able to spend more, maybe more demand will be created and consumption can go up. So December-January is a very good period for the semi urban and rural market and harvest being good, it should make for much better demand in the coming two months.”

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