Mumbai: French lender, BNP Paribas plans to apply for a license to set up a non-banking finance company in India shortly, as part of broadening its existing India operations, Jacques Michel, chief executive and country manager of BNP Paribas said in Mumbai Thursday.
“The proposed NBFC will supplement our existing operations in India and will help us broaden our product offerings in this market. We would shortly approach the Reserve Bank of India (RBI) for the license,” Micheal told reporters.
The NBFC will focus on businesses such as corporate finance, fixed income, equity derivative products and portfolio management services, Micheal said. Presently, India contributes less than 1% to the total global revenues of BNP Paribas.
The bank is looking at the NBFC route to strengthen operations in the country at a time when the RBI favors foreign banks to set up wholly-owned subsidiary in the country and incorporate locally to increase their local commitment.
Currently, BNP Paribas has eight bank branches in the country and is primarily present in corporate banking.
The bank has joint venture operations in areas such as insurance, retail broking and home finance. It owns 26% stake in SBI Life Insurance and 34% in Geojit BNP Paribas.