Chaudharys eye India’s financial, railway sectors

KATHMANDU, MAR 09 -

Industrialist Binod Chaudhary has started preparations to expand investment in India’s financial and railway sectors.

In India, Chaudhary Group has investments in fast moving consumer goods and hospitality sectors through its global arm Cinnovation/CG.

“Indian financial institutions have presence in Nepal, and our move is to show Nepalis can also invest in India,” said Chaudhary, president of Chaudhary Group. “If a like-minded joint-venture partner is found, we have plans to operate a financial institution in India.”

He said India’s financial sector offers better prospects for growth, especially in the remittance business, as there is a huge presence of Nepali migrants in India. “The planned bank will be a new one. We are holding consultations and study.”

India last year opened licenses for a new category of banks named “small finance banks and payment banks” which are meant to support financial inclusion by providing small savings accounts, payments/remittance services to migrant labour workforce and low income households, and supply of credit to small business units, among others.

According to Indian media reports, around 100 applications have been registered with the Indian central bank -- Reserve Bank of India.

Chaudhary Group has investment in Nabil Bank and United Finance in Nepal, while CG Finco offers remittance services.

Chaudhary Group’s latest move comes a year after Nepal Rastra Bank directed foreign non-financial institutions having investment in Nepal’s banks and financial institutions (BFIs) to divest their shares.

Chaudhary Group has a 50 percent stake in Nabil Bank through its Irish company NB International. Chaudhary, however, said the group’s plan to expand investment in India’s financial sector does not have any relation to Nabil Bank issues.

He also said the group was also holding study on investing in Indian Railway’s modernisation plan. “If we find a reliable partner, we are ready to invest in India’s railway sector,” he said.

Source: The Kathmandu Post