Comments
Two leading private sector lenders HDFC Bank and Kotak Mahindra Bank seem to be readying plans for a new pan-India umbrella entity (PUE) licence for retail payments.
HDFC Bank late on Thursday night said it has executed an agreement for subscribing to 4,995 equity shares of the face value of ₹10 each fully paid up issued by Ferbine Private Limited for a consideration of ₹10 per equity share.
“Post investment, bank will hold 9.99 per cent of the equity shareholding of Ferbine,” it said in a regulatory filing. The acquisition for cash consideration of ₹49,950 will be completed by February end, HDFC Bank said.
Umbrella entity for retail payments could see robust response
Earlier in the evening, Kotak Mahindra Bank too had said it picked up 9.99 per cent stake in Ferbine.
Promoted by Tata Sons Private Ltd, Ferbine was incorporated on January 18, 2021, to make an application to RBI for the PUE licence.
“The main business of the company would be to operating a pan-India umbrella entity for retail payment systems, as would be allowed/licensed by RBI, subject to approval of the PUE application,” Kotak Mahindra Bank said in the filing.
Retail payment systems: RBI opens doors to private sector
The acquisition in Febrine Private Limited by Kotak Mahindra Bank is likely to be completed on or prior to February 26, 2021.
“It may be noted that the Bank may participate in future capital raise by Ferbine,” the bank said.
RBI deadline
The announcement comes just ahead of the RBI deadline for accepting applications for umbrella entity for retail payments by February 26, 2021.
Earlier, So Hum Bharat Digital Payments had announced that it is in talks with private sector lender YES Bank for a 9.99 per cent equity investment and will work together on the proposed new umbrella entity.
Other banks, including State Bank of India, are also understood to be evaluating and applying to the RBI under the guidelines.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.