Resilient Innovations (BharatPe), one of India's fastest growing fintech companies, will be an equal partner.
The RBI would consider granting a licence for commencement of banking business under Section 22 (1) of the Banking Regulation Act, 1949, on being satisfied that the applicant has complied with the requisite conditions laid down by RBI as part of in-principle approval.
The central further said that this “in-principle” approval has been accorded in specific pursuance to the Centrum Financial Services' offer dated 1 February 2021 in response to the expression of interest notification dated 3 November 2020 published by the Punjab & Maharashtra Co-operative Bank, Mumbai.
Centrum said that the RBI's in-principle approval is a validation of Centrum's proven expertise in financial services and BharatPe's Digital Leadership, both essential for setting up a New Age Bank. Starting off with existing capabilities of an NBFC and a Fintech, active and potential customer base, digital reach and technology, should enable the SFB to scale up quickly.
The SFB will be guided by the directions and timelines of the RBI on the amalgamation of Punjab & Maharashtra Co-Operative Bank.
Jaspal Bindra, executive chairman, Centrum Group, said We are delighted that a new banking license will be issued to a NBFC after a gap of nearly 6 years and would like to thank the RBI for the opportunity and confidence shown in us. We are excited to partner with BharatPe to create this new age bank, with a strong team.
The Centrum Group has diversified fee businesses and a lending platform for institutions and individuals. institutional services include investment banking, mid-corporates & sme credit and broking to fiis, pension funds, indian mutual funds, domestic institutions etc. It also provides MSME credit, wealth management services to HNIs and family offices, affordable housing finance in tier 2 & 3 cities, micro finance loans and retail broking. Its asset management business offers funds across private debt and venture capital.
Centrum Capital recorded a consolidated net loss of ₹ 16.02 crore in Q3 FY21 as against a net profit of ₹ 3.35 crore in Q3 FY20. Total income declined by 7.2% YoY to ₹ 123.12 crore during the quarter.
The scrip surged 8.30% to end at ₹ 50.25 on Friday.
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