Anil-Ambani controlled Reliance Capital on Tuesday announced that it will apply to the Reserve Bank of India for a banking licence.
Reliance Capital will be the promoter of the proposed new bank.
Two financial behemoths from Japan --Nippon Life Insurance and Sumitomo Mitsui Trust Bank--have agreed to take 4-5 per cent stake each in the proposed new bank, Reliance Capital said in a filing to the stock exchanges today.
Reliance Capital shares jumped 4.68 per cent to Rs 328.85 on the BSE in morning trade.
"Reliance Capital is delighted to partner with two of Japan's largest firms--Sumitomo Mitsui Trust Bank and Nippon Life Insurance--for our proposed new bank," Sam Ghosh, Chief Executive Officer, Reliance Capital, said.
The agreements were signed by Sam Ghosh, CEO, Reliance Capital, Kuniyuki Shudo,General Manager Global Business Planning and Coordination Department, Sumitomo Mitsui Trust Bank and Hirohuki Nishi, Director and Executive Officer, General Manager of International Planning and Operations Department, Nippon Life Insurance.
For Nippon Life, this will be third investment in the Anil Ambani Group companies.
In March 2011, Nippon Life Insurance had acquired 26 per cent stake in Reliance Life Insurance for Rs 3,062 crore. In January 2012, it had acquired 26 per cent stake in Reliance Asset Management Company for Rs 1,450 crore.