The Hindu Business Line : Merger to boost IndusInd retail biz

Mr Bhaskar Ghose, Managing Director, IndusInd Bank (right); with Mr J. Moses Harding, Executive Vice-President (Treasury & Global Banking); and Mr S. V. Zaregaonkar, Chief Financial Officer, at a press meet in Mumbai on Monday. — Paul Noronha

Mumbai , April 12

INDUSIND Bank expects its retail loan portfolio to grow by Rs 3,000 crore in 2004-05 following the merger of Ashok Leyland Finance Ltd with the bank, Mr Bhaskar Ghose, Managing Director and CEO, said on Monday.

Addressing a press conference on the occasion of the bank's 10th anniversary, Mr Ghose said retail business was expected to contribute 40-45 per cent of the bank's business in the current fiscal. "Now IndusInd Bank is on an accelerated growth path and has chosen the retail banking to be the thrust area," he said.

He said the merger of the non-banking finance company would also help the bank to expand its reach. Out of the company's 156 branches, 136 are located where the bank has no branch currently. The bank will also be adding another 14 branches shortly to its existing 62 branches, he said.

Referring to the bank's growth in the last ten years, Mr Ghose said its deposits exceeded Rs 10,000 crore as on March 31, 2004. Advances had increased from Rs 500 crore in 1995 to Rs 6000 crore in 2004.

Mr Ghose said the bank would divest 50 per cent of its stake in the IT subsidiary — IndusInd Information Technology Ltd to the bank's overseas promoter IndusInd International Holdings Ltd. (IIHL)

After the ALFL merger, IIHL's stake would come down to 31 per cent from 41.32 per cent. The Mauritius based entity had applied last year to hike its stake to 49 per cent, which was cleared by the Government last month as per the old norms and they were expected to buy the shares from the secondary market.

Mr Ghose said unlike many other banks, IndusInd would be benefited from the RBI's RTGS system as many smaller banks would be using its facility.