Rel Cap may enter banking biz when norms permit

Anil Ambani,CMD, Reliance Capital said that the company would enter the banking sector as and when regulations permit. He said that Reliance Capital would enter the asset reconstruction, institutional broking and PE business. He said the company would invest Rs 2000 crore into insurance operations.



The Reliance Mutual Fund asset base has grown to Rs 90,000 crore, he said. He feels that the Reliance Capital balance sheet has not leveraged significantly. He added that the biggest risk to the global market is the multi-dimensional US credit crisis.



Excerpts from Anil Ambani’s speech at a company Press Conference:



We will increase our employee base from 30,000 to over 100,000 people and increase the number of our business partners from five hundred thousand to one million. We will also invest another Rs 2,000 crore in our insurance businesses taking our cumulative investment to over Rs 4,000 crore or nearly a billion dollar.



We will consider entering the banking sector as and when the regulation permits. We will globalise our operations leveraging our domestic experience and capabilities; expand our asset management, life insurance and broking operations in emerging markets across Asia, Africa and the Middle East. Together these investment initiatives will further accelerate our growth momentum and lead to substantial value creation.



Reliance Mutual Fund has over the years built for itself a great name in the market by offering investors not just consistently higher return but also a highly innovative and diversified portfolio products and services along with an unmatched track record of integrity. The journey over the past three years has been truly spectacular.



In June 2005 we barely managed Rs 6,000 crore of assets. Today we have grown nearly 15 times to managing over Rs 90,000 crore. This represents an average inflow of Rs 117 crore for every single working day over the past three years.



Our asset management company has been appointed as one of the fund managers by the Employees Provident Fund Organisation or EPFO this year, a hugely prestigious account. EPFO has entrusted over Rs 6,000 crore to our company for investment management. The corpus of the account is Rs 240,000 crore.



Reliance Mutual Fund has nearly seven million investors up from barely half a million investors in June 2005, the largest body of investors amongst all private sector mutual funds in the country today.



Our investor base through the Systematic Investment Plan is over one million strong and growing.