Financial Daily from THE HINDU group of publications
Friday, Jul 30, 2004
Financial Daily from THE HINDU group of publications Friday, Jul 30, 2004 |
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Markets
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Financial Services Money & Banking - Private Banks IndusInd Bank plans capital market outfit Our Bureau
Kolkata , July 29 INDUSIND Bank has decided to set up a subsidiary to handle activities related to the capital market. The company, which is likely to be incorporated shortly, will take up a host of functions, including equity broking, portfolio management, and distribution of financial products. The bank, which hopes to increase its fee-based income through the subsidiary, feels that the proposed company will be able to provide a number of services to clients. It also plans to develop specialised investment and risk management products for discerning customers. "The capital market outfit will provide clients with a separate platform, one that can be used where the bank itself cannot provide the service. Equity broking, for instance, is one such area," said Mr Pravin Batra, Senior Vice-President. The bank has also decided to tie up with a few overseas banks, including those in West Asia. Such tie-ups are expected to widen its base and cater to NRI investors. Talks are in progress with certain players abroad. No names, however, are being revealed at this stage. The bank, incidentally, has already set up bases in Dubai and London. IndusInd Bank, which has taken on a few senior officials in key positions after the merger of Ashok Leyland Finance Ltd (ALFL), has proposed to convert ALFL's offices into branches. As of June 30, it had 62 branches of its own, apart from 12 extension counters and 80 offsite ATMs. The idea is to have a network of around 200 branches. Mr Batra, who heads corporate banking at IndusInd, said the merger of ALFL has added a healthy asset portfolio. The process of integration (as envisaged by the bank) has already started, he added. It may be mentioned here that IndusInd Bank's total income for quarter ended June 30 at Rs 337 crore increased by 51 per cent over the corresponding quarter of the previous year. Net interest income at Rs 92 crore recorded a 233 per cent rise. Advances as on June 30 were at Rs 6,243 crore, while total deposits as on that date stood at Rs 11,272 crore. The bank reported a capital adequacy ratio of 12.87 per cent against 12.75 per cent as on March 31.
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