As per ET report Reliance Capital, Anil Dhirubhai Ambani Group company, is awaiting approval from the National Housing Bank and Reserve Bank of India for its housing finance and consumer finance business. Once the approvals are in place the company will farm out its housing finance and consumer portfolio into the respective home finance and consumer finance company.
Speaking to ET, Reliance Capital MD Sam Ghosh said the company had already applied to the regulators for permission to set up the two companies. He added there was no change in its business plans despite the global crisis. â€œWe have not leveraged our balance sheet in any significant manner. We have not lent money to subprime or invested in leveraged products.
We have followed a rigorous evaluation approach in making investments and disbursing loans,â€ he said. The company has built up a consume finance business of Rs 9,400 crore with over one lakh customers and would continue to grow. The housing finance company was expected to be launched in a monthâ€™s time.
According to Mr Ghosh, the group is continuing with its growth in customer base despite the decline in the stock market. Reliance Capital would continue to make big ticket investments in the life insurance company.
As on September â€˜08 the Reliance Capital had invested 2199cr in the life arm and would add another Rs 2000cr in future taking the cumulative investment to over Rs4,000cr. During the year the life company has added 400 branches taking its total network to 1100 branches.
It has also doubled its employee base in the last six months from 14,700 employees to 28,670. Mr Ghosh said the company was pursuing growth without compromising profitability or conservatism.
â€œIn order to achieve this balance we have put in place a tiered system for branch operations, a measured approach towards allocation of capital and a healthy mix of own and third party distribution reach,â€ he added.