Fullerton India, a subsidiary of Fullerton Financial Holdings Pte Ltd of the Singapore-based Temasek Holdings, is looking at acquiring new entities in the country to augment its business. ?We are open to acquiring businesses which are in sync with our line of business. We are keen on both organic and inorganic growth,? G S Sundararajan, managing director and CEO, Fullerton India told FE. Temasek would have a greater foothold in India through the subsidiary route, if these plans succeed, even as it awaits the Reserve Bank of India clearance to increase stake in ICICI Bank.
Sunderajan said that the company is set to roll out a pilot project in the rural markets in April. A detailed study has already been conducted to assess the credit and risk appetite of these markets. The pilot run would be initiated in states like Maharashtra, Karnataka, Andhra Pradesh, Rajasthan and Tamil Nadu among others. Fullterton, a non-banking finance company, with 600 branches in 300 towns, is targeting customers belonging to the lower to mid-sized income group. It has disbursed loans to the tune of Rs 2,200 crore so far in the last two years. However, Sunderajan said that the company hopes to double the figure this year.
Meanwhile, the RBI and the government are yet to take a decision on whether to allow Temasek Holdings and the government of Singapore Investment Corporation (GIC) to increase their stakes in ICICI Bank. The two have asked the government to recognise them as separate entities for all future investments in Indian entities.
Both entities have evinced interest in picking up 10% stake each in ICICI Bank. However, the Reserve bank is yet to take a decision on the issue. The central bank had earlier said that the two entities cannot be treated separately as both belonged to the government of Singapore. These investments came into India following the comprehensive economic co-operation agreement singed between India and Singapore.