Hinduja Group aims for value creation of $35-40 bn in BFSI sector, confident of acquiring Reliance Capital by Nov-end

Hinduja Group is aiming for a value creation of $35-40 billion in the banking, financial services, and insurance (BFSI) sector in the next five to seven years by adding more verticals to fill up the gaps.

Ashok P. Hinduja, chairman of Hinduja Group Companies (India), said that the group is diversifying and has plans to get into the new tech, digital and fintech as part of its new phase of growth and fill gaps through acquisitions to have complete offerings in the BFSI sector.

“So the first phase will start and the objective of the holding structure, which is a Mauritius-based IndusInd International, is to grow into the BFSI sector to complete the full stack,” he said.

Ashok Hinduja was speaking at a media round table in London.

The Hinduja Group owns IndusInd Bank, Hinduja Leyland Finance and Hinduja Bank (Switzerland), among other businesses.

The Hinduja Group is raising promoter’s stake in IndusInd Bank as the RBI has modified its policy for increasing promoters’ stake in private banks up to 26%. 

The group is also confident of acquiring debt-ridden Reliance Capital by November end of this year. The IndusInd International Holdings Ltd (IIHL) has emerged as the sole bidder for Reliance Capital and it is pitched in a legal battle with Torrent Investments, which left out in the second round of auction.

The acquisition of Reliance Capital will take the group in sectors such as life insurance, general insurance and health insurance besides the ARC (asset reconstruction company) and stock broking, said Ashok Hinduja.

“So that will cover part of it, balance left out is the mutual fund, the wealth management that is also we are on a lookout for,” added Hinduja.

“Hopefully by the end of this financial year, mostly 95 per cent of the BFSI sector will be covered,” he further said.

“The plan for BFSI is all clear, is all known that where this whole sector will finally go... (We are) targeting to touch anywhere between $35 to 40 billion value creation on that,” said Hinduja.