Reliance Capital, Nippon Life Insurance To Start A Commercial Bank In India

Advertisement
Reliance Capital, Nippon Life Insurance To Start A Commercial Bank In India
Advertisement
Reliance Capital, an arm of the Anil Dhirubhai Ambani Group, and the Japanese financial services giant Nippon Life Insurance on Monday announced their decision to jointly start a commercial bank in India after necessary approvals. The announcement, which came during Indian Prime Minister Narendra Modi’s visit To Japan, aims at strengthening bilateral economic ties between the countries, the two groups said.

According to Yoshinobu Tsutsui, the president of the Nippon Life Insurance, “Reliance Capital is planning to set up its own bank, which will cater to the individual customer and small-and-medium enterprises all over India.”

With a view to improve the financial infrastructure of India, Nippon Life Insurance is participating in this bank project as part of strategic business alliance, said Tsutsui.

It is important to note that the Japanese insurer has a 26% stake in Reliance Capital Asset Management Company acquired for $290 million in 2012 and Reliance Life Insurance Company for $680 million invested in 2011.

The two groups further added that the partnership in the setting up of Reliance Bank is the logical extension of an existing relationship in the financial services sector.
Advertisement


“The Prime Minister’s (Narendra Modi’s) visit to Japan reinforces the strategic focus of global partnership between India and Japan,” said Amitabh Jhunjhunwala, group managing director, Reliance Group.

“As a good role model of business partnership between Indian and Japanese corporations, Reliance Group and Nippon Life Group will actively further expand their collaboration, which will contribute towards strengthening the relations between India and Japan,” he said.