By 2030, Hinduja Group aims for $35–40 billion value creation from the BFSI sector

Ashok P. Hinduja

Ashok P. Hinduja, Chairman, Hinduja Group of Companies, India said that, the Hinduja Group is placing a large bet on the Banking, Financial Services, and Insurance (BFSI) industry. The group hopes to have a value creation of USD 35–40 billion in the next five to seven years by expanding its verticals and filling in any gaps.

The family-run Hinduja firm is now focusing on BFSI as the next ten years’ development engine in addition to the energy and mobility sectors.

During a media roundtable here, Hinduja Group, owning IndusInd Bank, Hinduja Leyland Finance, and Hinduja Bank (Switzerland), said that the group is diversifying and plans to enter 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.

Additionally, it is boosting the promoter’s interest in IndusInd Bank in light of the RBI’s modification of its policy allowing promoters to own up to 26% of private banks. Furthermore, it is optimistic that it will purchase the heavily indebted Reliance Capital by the end of November of this year.

In addition to the ARC (Asset Reconstruction Business) and stock broking, Ashok Hinduja (73), who stated that the group will enter the life, general, and health insurance markets with the acquisition of Reliance Capital.

“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,” said Hinduja adding “hopefully by the end of this financial year, mostly 95 per cent of the BFSI sector will be covered.” “The plan for BFSI is all clear, it is all known that where this whole sector will finally go… (We are) targeting to touch anywhere between USD 35 to 40 billion value creation on that,” Hinduja said.

Hinduja also said once Reliance Capital is acquired, and it will remain as a separate entity.

“The common parent is the same, but every entity is a separate operating entity,” he said, adding Reliance Capital’s general insurance is run separately.

“So these are value creations after two, three years to go for the IPOs,” he said.

IndusInd International Holdings Ltd (IIHL), owned by the Hinduja group, is the only bidder for Reliance Capital. It is being sued by Torrent Investments, which did not make it to the second round of the auction.

The case is presently before the Supreme Court, where the Ahmedabad-based group has filed to request a stay of the NCLT’s approval of the Hinduja Group’s settlement plan for a second time.

Due to the growing ownership in IndusInd Bank, Hinduja stated that the Reserve Bank of India (RBI) has changed its policy to permit private bank entrepreneurs to own up to 26% of their banks.

“Now after 26 per cent, we have approached. They have given us consent that yes, as per the policy you can go. So we have already started raising the capital, and we will get about over a billion dollars to go into phases, our first capital raise which was the treasury shares was there. So we will be completing that on the 15th of this November,” said Hinduja.

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