The Hindu Business Line : Centurion Bank of Punjab setting up trusteeship, estate management services co

Kolkata April 25 Centurion Bank of Punjab (CBoP) is setting up a trusteeship and estate management services company in association with certain legal luminaries.

The bank, which will own 20-30 per cent of the proposed company's stake, intends to offer a range of services, the market for which is expected to grow briskly in the days ahead.

CBoP, said Mr Shailendra Bhandari, Managing Director & CEO, is roping-in one or more partners — outfits that specialise in legal and accounting work — which will hold the rest of the new venture's equity. The company, incidentally, has been named CERMA.

The idea is to provide clients with solutions related to preservation of wealth over generations, an addition to the bank's efforts at providing conventional wealth management services.

The legal firms that are expected to be part of the venture will provide critical services in this regard.

Trusteeship and estate management services present a growing niche, Mr Bhandari said while referring to the estimated size of the business in India.

While some of the foreign banks do cater to this market, CBoP is the first Indian private sector bank to step into it, he told newspersons.

Asset reconstruction

On another front, the bank intends to shortly move ahead with its asset reconstruction venture in association with City Union Bank and other partners. The two banks are to hold 30 per cent each in the reconstruction venture. The RBI has given its in-principle approval already.

CBoP aims to record a sizeable increase in business for the year ending March 31, 2007. While the figures have not been released yet, the bank hopes to close the period with roughly Rs 26,000 crore. Of this, Rs 15,000 crore is expected to be on account of deposits. The bank's NPAs stood at 1.2 per cent at the end of December 2006.

Mr Bhandari said the bank may wish to consider a fresh acquisition (after having done it with Lord Krishna Bank). Its plans, however, are not region-specific. In the days ahead, CBoP hopes to push its priority banking service, branded Centurion Elite.

Retail focus for broking venture

The proposed three-way stock broking venture, promoted by CBoP, Ambit Capital and Ambit Web 18, will focus heavily on retail business.

The bank, which will hold a 20 per cent stake in the company, will offer a clutch of options for clients to access its services. These will include Web-based access as well. "We will compete with equity brokers which draw heavily on business generated from retail clients. The potential is huge," Mr Bhandari said.

A number of broking firms have lately expanded their networks and many of them have started offering Internet broking as well. The broking space has also seen the arrival of large players, including Reliance Money, it is pointed out.

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