Monday, April 19, 2021

A brief look at REPCO, the latest universal bank licence candidate

 Repco Bank would approach the private sector for investments. However, it is yet to start such an exercise.


REPCO Bank, which recently applied for a license to start a universal bank in the country, expects to post a net profit of up to Rs 60 crore in FY21. A multi-state cooperative society, it is currently under the administrative control of the Union Home ministry.

The Government of India — along with the governments of Tamil Nadu, Kerala, Karnataka, and Andhra Pradesh — is the promoter. They together hold a 55.3 percent stake in the lender and the remaining 44.7 percent is with individuals.

With 1.2 million customers, the lender applied for a universal banking license to broad base its operations, services and come under the regulatory purview of the Reserve Bank of India.

Repco Bank would approach the private sector for investments. However, it is yet to start such an exercise.

It expects a 10 percent rise in business in 2021-22, especially by growing its gold loan portfolio.

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