Financial Daily from THE HINDU group of publications
Tuesday, Dec 30, 2003
Financial Daily from THE HINDU group of publications Tuesday, Dec 30, 2003 |
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Money & Banking
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Private Banks IndusInd Bank open to more acquisitions — `Strategic investments from foreign banks welcome' Our Bureau
Mr Bhaskar Ghose, Managing Director, IndusInd Bank, addressing a press conference in Hyderabad on Monday. — A. Roy Chowdhury
Hyderabad , Dec. 29 CLOSE on the heels of its merger with Ashok Leyland Finance Ltd (ALFL), IndusInd Bank has announced that it is open for further acquisitions of any of an NBFC or a private bank. It will also welcome strategic investments by foreign banks to focus on the retail segment, both in India and abroad. At a press conference here on Monday, Mr Bhaskar Ghose, Managing Director of the bank, said talks were under way, including with some South-east Asian banks, in this regard. "Private banks perfectly fit into our plan because of their national focus, low staff profile and thrust on information technology," he said. He, however, said these would be taken up only after "digesting" the present merger with ALFL. Referring to foreign banks pumping investments into Indian banks, he said IndusInd too was open to strategic investments from foreign banks. "We are not looking for capital as we are well capitalised. What we would look at is their strengths in retail business and presence in countries with good NRI population. Also, we are interested in their products, services and processes which are new to India," he said. Commenting on the merger with ALFL, he said it would catapult the bank into the retail segment, thanks to the huge strengths of the former in auto financing. "Mostly, we have been a bank with a focus on the corporate sector. One of the areas we are not visible is retail business," he said. "We will also get access to the three-lakh strong customer base of ALFL which will help us cross-sell our retail products," he added. The bank could certainly bank on the high interest rates prevailing in the two-wheeler financing segment. "Many commercial banks tried to cash in on this. But they have not been successful," Mr Ghose said. Post-merger, IndusInd would convert some of the 140-odd ALFL branches into its own, particularly where the bank had no presence. "But we will leave it largely untouched and the interference would be as little as possible." At present, the bank has a network of 57 branches, excluding 12 extension counters, with licences for 20 more branches. By June, the bank would have 160-65 branches, including the conversions of ALFL branches. The IndusInd-ALFL merger proposal was approved by both the entities at 9:4. The scheme will come into force with retrospective effect from April 1, 2003, subject to the necessary consents.
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