Manappuram Group may apply for a banking licence

Manappuram Group is contemplating applying for banking licence through its microfinance arm.

Inaugurating Manappuram Finance's new regional office in Kochi, Managing Director and CEO VP Nandakumar said the group has also initiated due diligence to take over a prominent vehicle loan company in the country.

A host of entities like Manappuram have expressed interest in turning themselves into Payment Banks. Introducing the new concept of niche banking in India, the Reserve Bank of India last month issued final norms for payment banks and small finance banks.

"We are going for the third NCD public issue during the current financial year from January 15, 2015, to mobilise Rs 200 crore," Nandakumar said.

Earlier in September, Manappuram Finance, a leading gold financing company, had announced a public issue of secured, redeemable, non-convertible debentures (NCDs) of face value of Rs 1,000 each, aggregating to Rs 150 crore.

Manappuram Finance had reported a net profit after tax of Rs 226.01 crore for FY14.