Tata Sons withdraws application for bank licence

Mumbai  :  Tata Sons, the holding company of the Tata Group, has withdrawn its application for a bank licence, the Reserve bank of India (RBI) said Wednesday.

In a separate statement, Tata Sons said Tuesday it wrote to the RBI, withdrawing the application for a new bank licence dated July 1, 2013.

“On a detailed evaluation of the ‘Guidelines for Licensing of New Banks in the Private Sector’ and analysis of clarifications thereto, Tata Sons has reached a conclusion that the group’s current financial services operating model best supports the current needs of the Tata Group’s domestic and overseas strategy, and provides adequate operating flexibility to its companies, while securing the interests of the group’s diverse stakeholder base,” the group said.

“After prolonged deliberations and detailed analysis, Tata Sons has, therefore, decided to withdraw its application dated 1 July, 2013, from the current round of licensing,” the company said.

Tata Sons, however, said it “shall continue to monitor developments in this space with great interest and looks forward to participating in the banking sector at an appropriate time.”

The RBI said it has accepted withdrawal of the application.