The Hindu Business Line : IndusInd Bank on lookout for NBFC

INDUSIND Bank is looking to acquire another non-banking financial company, preferably in the vehicle financing business, to augment its growth, Mr Bhaskar Ghose, Managing Director, said.

"We have expertise in this area and the returns from this business are higher than in other retail loans such as mortgages," he said.

In 2004, the bank acquired Ashok Leyland Finance. The bank, which entered the retail banking space about a year ago, also has plans to launch its own credit card within the next six months, Mr Ghose said.

ATM arrangement with SBI: He was speaking to reporters on the sidelines of a press conference to announce the signing of an ATM sharing agreement with State Bank of India. With this arrangement, IndusInd Bank's customers will now be able to access the 8,250 ATMs of the SBI group. The charge is Rs 20 for withdrawals and deposits and less for other services. IndusInd Bank's customers who have a relationship of Rs 25,000 can avail themselves of the ATM service free.

Eyes ARC: IndusInd Bank is also looking to either set up an Asset Reconstruction Company (ARC) jointly with other banks or buy NPAs from other banks. Mr Ghose said, "We have had good success in recovering our NPAs, which will continue to be a major contributor to our bottom line for the next two to three years."

IndusInd Bank would be the major equity holder in the ARC, for which it has made an application to RBI, Mr Ghose said. To augment its capital base, the bank is planning a GDR issue to raise about Rs 100 crore in two tranches in the next fiscal.

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