Reliance Cap ropes in Japan's SMTB as strategic partner

Reliance Cap ropes in Japan's SMTB as strategic partner

Firming up its plans to set up a bank, Anil Ambani group firm Reliance Capital on Thursday roped in Japan’s Sumitomo Mitsui Trust Bank (SMTB) as a strategic partner to collaborate on various businesses, including in its proposed banking venture.

SMTB, Japan’s largest financial institution with assets under custody of $1.8 trillion, will take an initial stake of 2.77 per cent in Reliance Capital at an investment of Rs 371 crore as part of a “comprehensive long-term strategic alliance between the two companies.”

“Reliance Capital intends to establish a new bank in India, with support of Sumitomo Mitsui Trust Bank as strategic partner, as and when RBI’s policies permit formation of the same,” the two companies said in a joint statement.

SMTB and Reliance Capital, the financial services arm of diversified conglomerate Reliance Group, will also collaborate in providing solutions for their clients, including inter alia in the area of M&A opportunities in India and Japan, and will assist each other in distribution of their respective financial products through their networks.

Commenting on the deal, Reliance Group Chairman Anil Ambani said, "We believe Sumitomo Mitsui Trust will play an important role in the future of our company, through their all-round support and long standing experience, and will help accelerate our growth as we tap new opportunities and expand our existing businesses."

This is the second major partnership that Reliance Capital has entered into with a Japanese financial sector giant after Nippon Life, to which it has sold stakes in its life insurance and mutual fund ventures.
PTI

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