IndiaBulls has decided to stop the race for bank license. The company now wants to set its foot in the infrastructure finance segment.

The company has decided to quit the race before the release of the discussion paper regarding guidelines for fresh bank licenses by RBI.

Gagan Banga, Indiabulls CEO said: "Our priority is to build a large HFC with a strong capital base, distribution network and best in class products. Our mortgage business has already captured respectable market share. We are also steadily scaling up our infrastructure lending portfolio, and over time plan to get the status of an infra finance company."

"We will want to stick to our core business of housing finance and being an HFC of size and scale and grow to at least `50,000 crore of assets from the current `12,500 crore before considering other options. At this time, IBFSL doesn't have a strong inclination for a banking licence, we shall thoroughly analyse the guidelines as and when the same are finalised by the RBI," he said.

The group has four listed entities Indiabulls Financial Services (IFS), Indiabulls Securities, Indiabulls Real Estate and Indiabulls Power.

During the monetary policy review, RBI Governor D Subbarao had said, "There has been a number of issues have come up like - What should be the entry level capital? What should be the promoters capital? What should be the dilution norms? Whether we should allow corporates to come in? Whether we should allow NBFCs to come in automatically? We will marshal interntional and our own experience. The discussion paper will include all that and thereafter we will take feedback."