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Reliance is entering into banking sector - Will It Succeed?

Created by : Anita Sawant, M & A Advisor, SBI Caps  | 09 28 2010 12:44:52 +0000
Industry : BankingFunctional Area : Capital Management(Corporate Finance)
Keywords : reliance banking sector succeed
Activity:  856 views;  last activity : 12 30 2010 10:44:20 +0000

Reliance being a major player [although it is debatable...] is setting its foot into banking sector which is being ruled by the State Bank of India and many other international banking companies. The ambitious venture of reliance can certainly taunt them for a long time just like their communication sector debts.

So, is it a wise decision on behalf of the company to start world class banks?

  
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Yes Vs No
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reliance will have to compete State bank of India and many other international banks which is quite a hard task to manage.


By Anita Sawant, M & A Advisor, SBI Caps  09 28 2010 12:44:52 +0000
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yes because its goodwill or reputation is trustworthy.
By sharvari kiran bakshi, MBA/PGDM student, Tasmac Institute of Wales university  | 12 30 2010 10:44:20 +0000
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Reliance has such a mammoth business that even if Reliance's banking arm takes care of the group's banking requirements then also there is a huge business,even if the banking arm doesnt make huge money then also whole group would save a lot of money and many issues like liquidity will be taken care of.
By parth parikh parikh, Premier Wealth Manager, HSBC  | 10 02 2010 03:56:40 +0000
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Yes, it will. And if it doesn't, it will twist the market and shareholders to look good.
By neha singh, Content Editor, Avestia Corp  | 10 01 2010 16:18:18 +0000
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Reliance has been thinking as it is a giant in the indian economy it can come into any sector and impress people. But thet does not happen in the banking sector as there is a very high competition. Nationlised banks r the main competitors for it and i dont think it will compete.
By Amit Kumar, MBA/PGDM student, Badruka College Post Graduate Centre, Hyderabad  | 10 01 2010 13:58:08 +0000
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I am not sure if reliance will succeed but I do not see any reason why they should not succeed. In terms of service, there is no bank in India which I can call it as 'excellent'. Indians accept any kind of service and hence anybody who has money can succeed in creating a successful bank. In the global market  people associate each brand with something. So a petrochemcical company like reliance should not have used the word 'reliance' when it started 'reliance fresh'. In india this is not the case. A shoe maker like 'Bata' can bring out 'Bata butter' and people in India will buy it whereas this is likely to be a failure in the international market. I hope reliance will not use the word 'reliance' for their new bank. Honestly, I do not see any reason why reliance should not succeed in banking because indian customers are extremely flexible and nobody in the Govt or public is bothered about the quality of service of any bank or any other organizations in India.
By John Jacob, Consultant, confidential  | 10 01 2010 09:22:52 +0000
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Yes they will. They have proven their mettle in any new area they have entered. People are a bit wary about banking because it involves serious transaction of money. Reliance is good at it. and who is going managing the money, Its the same workforce who are working in banking sector now. Its not hard for reliance, but yes 1st 2 years are going to be challenging
By Shridhar Chandru, Business Developement Manager, ERP Consulting Company  | 10 01 2010 08:52:06 +0000
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Reliance has all the stuff and can become best but it is not issue do they compete with SBI or not.
By Yugandhar , Assistent Manager - Cost & General Accounts  | 10 01 2010 04:02:15 +0000
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I strongly believe that Reliance as a banker will create new heights in the sector and it will make banking available to the masses as it has done in communication.
By Ramkishan Singh, Development Professional , ICICI Foundation for inclusive growth  | 10 01 2010 02:55:56 +0000
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We have to wait and see. They are brand. But still I think they cant suceed in all the areas of business.
By Purushothaman , Business Development Executive, eZeeCloud Infoserves Pvt Ltd  | 09 30 2010 18:31:34 +0000
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yes they have exp in finance biz
By cmsrinivas , SalesManager-autoloans NBFC  | 09 30 2010 17:43:48 +0000
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Service Industry like Banking requires the right attitude, absolute transparency and skilled Managers to set the right tune.Reliance group has all the right stuff for being successful in Banking world. In a country like India there is a lot of room for growth in Banking sector. With more than 50% of the population outside the banking arena, the demand is huge. They are welcome for a better banking environment where inefficiency will give way to a more modern customer friendly banking environment.
By dulal kanti choudhury, manager(credit & operations), State Bank of India Group  | 09 29 2010 20:21:31 +0000
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What do we need for a bank to succeed? Deep pockets for sure and Reliance have it. Scalability and Reliance are capable. Low operating costs and reliance are conservative enough to operate at low costs. Reach.. and they have the reach. Technology..well...all that you need is a banking product and hardware cost does not matter....Additionally, reliance brand image is good too.. However, Banking per se in Indian mindset, is nationalized bank oriented. For this to change in favour Reliance, it takes time and reliance should not have overambitious reach targets overnight..
By SR Sham Sunder, CEO/MD/Director Technoaid  | 09 29 2010 15:49:20 +0000
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Reliance will succeed for sure,Reliance has good weightage in SENSEX, They have deep pockets, High goodwill in indian market, best employees,what else needed, if reliance won't suceed then future of whole india will come in to question mark?
By Shyam Kumar Singh, Branch Operations Manager/ DBM, ICICI Bank  | 09 29 2010 14:28:03 +0000
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it will def depend on which customer segment bank is going to target and how well it compete with other bank in the same segment whats d marketing plan?whats d structure of financial product etc,at this stage we cant say whether it will succed or not.
By Ashish Bhartia, Relationship Manager, Acumen Business Consultancy Pvt.Ltd.  | 09 29 2010 10:04:36 +0000
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Anita it is not a issue that Reliance will fail to compete with S.B.I. or not. All other banks are still running with competition of S.B.I.

The main issue will be that " Can reliance be able to take another risk after failure of many retail sectors i.e. retail works:- reliance fresh, retail petrol pumps, retail trading(reliance money), etc etc...
By Vipin Bhasin, Private Equity/Hedge Fund/VC-Manager, Indian Investment Co.  | 09 28 2010 16:16:38 +0000
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This is a bad news as far as banking curtail is concern, another kitty on the pocket, rich will grow richer and poor will grow poorer. the whole banking system is a fraud so, it adds more woes to people rather than happiness.
By konkan SINGHA, Head- Talent Acquisition (IT), OptedJobs  | 12 30 2010 08:45:50 +0000
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Most of the banks in India exist with some motives like lending to agriculture sector and other priority sector. To put it simple every bank is expected to do some social banking but Reliance would be entering banking with the sole motive of BUSINESS EXPANSION. As savita quoted Reliance slogan "KARLO DUNIYA MUTTI MEIN - BANKING MITTI MEIN"
By V K VENKATESH, DEPUTY MANAGER, AXIS Bank  | 10 10 2010 14:01:26 +0000
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reliance won't succeed at all on background of failure of petrol pumps, retail outlets etc. etc. etc.

now. it is the news that they want to enter in share market with BSE and NSE. But it is not their business at all. Afterall, their slogal will be : kar lo Duniya mitti main.
By Savita Dhananjay Deshpande, Freelancer, Freelancer  | 09 29 2010 05:07:16 +0000
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