After making a lot of noise in various sectors including IT, tourism, financial services moving from its core automotive business in the past few years, M&M Group is all set to enter the banking arena.

Notably, the company will be entering into the banking industry taking cue from its deposit taking non-banking financial company (NBFC) arm Mahindra Finance. "We are not at all saying a not saying a 'no' to go-ahead for the banking license and we are very eagerly waiting for the new RBI guidelines," explained Ramesh Iyer, managing director at Mahindra Finance.

During the budget speech for the fiscal 2010-11 Finance Minister, Pranab Mukherjee confirmed the fact that RBI will issue fresh licences to some of the private players and NBFCs in the Indian market.

The financing arm of the M&M Group basically relies on disbursing these housing loans in the semi-urban and rural areas basically for house renovations and self owned properties for generating higher revenue.

According to the sources, the NBFC arm did a business of close to around Rs. 100 crore in the last fiscal.