Mukesh Ambani –DE Shaw likely to set up India’s largest private sector bank

Mukesh Ambani, head honcho of Reliance Industries Limited (RIL), in association with America based D E Shaw group, one of world’s largest financial institutions, is set to launch what is being termed as India’s largest private sector bank so far; also being dubbed as the ‘The Bank of Ambani.’

Following its tie up world’s leading hedge fund, RIL was armed to make its move into India’s booming financial services sector. The idea was to channelize D E Shaw’s technical and investment expertise in the field of financial services by means of RIL’s extensive market network and operational excellence, marking a strong foray by Reliance Industries into the sector. As a part of joint venture, services such as energy and carbon trading, energy and carbon derivatives, private equity, mutual funds and other security-linked products were being listed as part of likely offerings from the JV. But latest speculations suggest that Mukesh Ambani may have had much bigger plans for his foray into the field of finances.

If realized, this bank could readily pose a threat to other leading banks in India, both in private and public sectors alike. India’s Central Bank, which regulates the workings of the banking sector, is currently weighing options to decide whether or not to allow Mukesh Ambani and his enterprise to venture into the banking quarter. As of yet, the decision is still far from realization, but talk are underway.

Irrespective of whether the ‘Bank of Ambani’ finds the light of day or not, it is irrefutable that Mukesh Ambani’s foray into financial sector will see India’s private equity business; mutual funds and energy trading sector grow leaps and bounds. Given RIL’s omnipresence and excellence in all its functions, this JV too, nevertheless, try to reach out to a larger segment of population with an array of financial services that are comprehensive and dynamic in nature.

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