The Hindu Business Line : `Investment bankers will have a lot of work to do this year'

There are deals about to happen in the investment banking space, cutting across sectors. While it is still too early to talk about them, quality will remain an important issue for us in the coming days.

A few big ones are being lined up, pushed by some of the leading corporate groups. There has been considerable activity on the M&A front in recent years and the trend is expected to continue.

In sum, investment bankers will have a lot of work to do this year.

How are outfits like Kotak Securities and Kotak Asset Management performing at the moment?

Kotak Securities is a significant contributor to our profits. It now operates out of about 400 places. As for the asset management business, the name of the game is the funds that we get to handle.

We have a number of schemes, both equity and debt, which are designed to meet various requirements of investors. That number, in fact, has lately increased.

Let me tell you about our insurance venture with our overseas partner, Old Mutual. We are looking at an early breakeven target. The plan here is to offer a wide range of products, ones that can provide a certain measure of flexibility to customers.

Given the circumstances in India, most insurance companies are advancing fast in terms of profile.

When you say that the character of Indian money is changing, what do you mean?

Well, borrowing and spending habits have undergone a major transformation. Not all the trends that were evident, say, in the early 1990s are to be seen today. A stronger rupee is now a reality for India.

There are a host of new investment options for the average person. Retail lending is booming. At the same time, various markets are getting integrated. Needless to say, technology has been a big enabler.

Real estate is surging ahead, while commodity investing is on the verge of a sharp move forward. In fact, commodity funds are expected to materialize sooner or later. Real estate funds, on the other hand, may take a bit longer. And as the indices suggest, equities have done very well too. At another level, more Indians have started investing in art.

In fact, our bank is firming up plans to offer art advisory services. All these factors and many others combine to support my views...

How is the newly-launched private equity venture shaping up?

We hope to close it with commitments of over Rs 300 crore, a big portion of which has been secured. India Growth Fund has been conceptualised in partnership with SEAF Management of the US. It is being led by a veteran. Wait for a few more months and you will know more.

Any new initiatives from the bank?

We have been opening new branches. Nearly 30 branches are currently in operation. The idea is to have a 100-strong network by the end of fiscal 2008, covering all the major centres. We are taking a closer look at credit cards. A few innovations are also been tested; among them is a sweep facility that combines the benefits of a bank account and a liquid fund. We are putting into use our own liquid fund in this case.

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