Home / Companies / News /  R-Cap in talks with Sumitomo Mitsui for banking initiatives

Mumbai: The Anil Ambani-controlled Reliance Capital Ltd is in talks with Japan’s Sumitomo Mitsui Banking Corp. for various initiatives in banking for over a year, company said on Wednesday. In a statement to BSE, the company said it was “constantly exploring various strategic partnerships, which may or may not necessarily result into transactions."

“As regards your specific query on Sumitomo Mitsui, we have been engaged in discussions with that company for over a year, in relation to various initiatives in banking, etc. These discussions are only indicative, exploratory, and non-binding in nature. If and when these discussions result in binding commercial agreements leading to a disclosable event, we will promptly inform the stock exchanges as required in law" Reliance Capital said.

Last Friday, The Economic Times had reported, quoting sources, that Sumitomo Mitsui may pay $400 million for a 10% stake in the Anil Ambani-led non-banking financial company. Talks were at an advanced stage and could be concluded by September, the report had said.

If true, this will not be the first time that Reliance Capital will be contemplating a tie-up with Sumitomo. In June 2013, Reliance Capital had said that it would apply for a new banking licence in partnership with Sumitomo Mitsui Trust Bank and Nippon Life Insurance Co. Sumitomo and Nippon had agreed to pick up 4-5% stake each in the proposed bank. However, since the Reserve Bank of India did not grant Reliance Capital a banking licence, that deal did not fructify.

For the quarter ended 31 March, Reliance Capital reported a net profit of 267 crore compared to 265 crore in the same quarter last year. Income from operations, however, dropped 4.37% from 1,855 crore in the March 2013 quarter, to 1,774 crore in the March 2014 quarter.​

Shares of Reliance Capital were up 0.31% to 655.75 on Wednesday, while the benchmark Sensex was up 1.27% to 25,841.21 points.

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