Business Daily from THE HINDU group of publications
Monday, Oct 29, 2007
ePaper | Mobile/PDA Version
Business Daily from THE HINDU group of publications Monday, Oct 29, 2007 ePaper | Mobile/PDA Version |
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Money & Banking
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General Insurance
Our Bureau Mumbai, Oct. 28 State Bank of India plans to enter general insurance early next year and has appointed a consultant, said Mr O.P.Bhatt, its Chiarman. The bank is likely to tie up with a foreign player to set up a joint venture for general venture. Huge potential“It is the only area we are not present as of now and it has huge potential. We are speaking to a few foreign players,” said Mr Deepak Chawla, Deputy Managing Director, Corporate Strategy and New Businesses. The bank has infused Rs 500 crore capital in its life insurance subsidiary, SBI Life and may infuse Rs 2,000 crore next year. So the bank needs capital, which it hopes to raise once it gets approval for the holding company, Mr Bhatt said. About the bank’s equity raising plans, Mr Bhatt said the Government’s approval was expected anytime. The bank saw a growth of 18 per cent in housing loans as on September 30, 2007 and will continue to focus in this segment, Mr Bhatt said. Retail advances now constitute about 25 per cent of the bank’s gross domestic advances and housing loans constitute 52 per cent of retail advances. About the international operations, Mr Bhatt said that the bank was doing well in terms of remittances and trade. The market share is about 25 per cent and the plan is to raise it to 50 per cent in the next three years. In order to increase the fee income the bank is focusing on treasury operations and doing lot of structured products and derivatives trading. It also plans to offer other products such as selling of gold coins, gold deposit schemes, bullion trading and technology related products such as real-time gross settlement, multi-city cheques, mobile banking and ATM sharing alliance with other banks, all of which will bring in more fee income. More Stories on : General Insurance | Public Sector Banks | State Bank of India | Diversification
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