Applicants from Diverse Business Houses | v Tata Sons v Aditya Birla Nuvo v Reliance Capital v Bajaj Finserv v L&T Finance Holdings v Value Industries (Videocon subsidiary) v Indiabulls Housing Finance |
Other Private Sector Financial Services Companies (Medium-Large) | v JM Financial v Religare Enterprises v SREI Infrastructure Finance v Magma Fincorp v India Infoline v Edelweiss Financial Services v Muthoot Finance v Shriram Capital |
Financial Services Companies (Small) | v INMACS Management Services v UAE Exchange and Financial Services v Suryamani Financing Company v Smart Global Ventures |
Government Owned Agencies and Organisations | v LIC Housing Finance v Department of Posts v Tourism Finance Corporation of India v IFCI v IDFC |
Grassroots Development Organizations/ Microfinance Institutions | v Bandhan Financial Services v Janalakshmi Financial Services |
Based out of: Kolkata
Strengths: Strong existing rural base in Eastern, Northern and Central India; social focus of organization has been retained despite rapid growth in their portfolio even during troubled times for the microfinance sector in the country; healthy balance sheet
Weaknesses: Fewer years of operational experience when compared to other applicants
Opportunities: As they have outshone most of their MFI peers in the past few years, the time may be ripe for them to take the plunge into full fledged banking operations
Threats: Can their initiatives be scaled up and replicated without losing impact?
India Post (Department of Posts, Government of India)
Based out of: Everywhere in India
Strengths: Mind-boggling network in the most rural regions; have provided deposit services in recent times
Weaknesses: Lack of technological development and innovation, bureaucratic decision making process, training of postal department staff needs to be in sync with the generation
Opportunities: If they can improve on their corporate governance, archaic delivery channels and appropriate training at the front and back-ends, they can potentially provide the much needed impetus in rural areas; existing trust within rural network
Threats: Critics say that they haven’t quite done their job of being a good postal department, so do they deserve to be rewarded with a banking license,
Janalakshmi Financial Services Pvt. Ltd. (NBFC and Section 25 MFI)
Based out of: Bengaluru
Strengths: Will be in a good position to meet priority sector lending norms, excellent group of investors for the organization; successful recent capital infusion
Weaknesses: Loan Portfolio smaller than large MFI peers
Opportunities: Use their base in Southern India to reach unbanked areas
Threats: Need to scale up their NBFC operations to become a banking entity both geographically as well as at the product level