IndusInd Bank keen on M&As

Pune, Sept 28 | Updated: Sep 29 2006, 05:30am hrs
IndusInd Bank is keen on mergers and acquisitions. Besides private sector banks, the bank is showing an interest in NBFCs with a loan portfolio of between Rs 1,000 crore to Rs 2,000 crore. Ashok Leyland Finance, an NBFC specialising in vehicle financing, has already merged with IndusInd.

The banking industry is in the consolidation mode. United Western Bank and Ganesh Bank of Kurundwad are recent examples. Mergers and acquisitions are of interest to IndusInd, Bhaskar Ghose, MD and CEO, IndusInd Bank said.

The bank is interested in NBFCs in the medium-term. Not many small private sector banks are up for sale at this point of time and old private sector banks that serve certain segments do not serve our purpose. NBFCs with a presence in credit cards, housing loans, capital market products are of interest to us, Ghose said. He was speaking to reporters after the 12th AGM of the bank on Thursday.

For the first quarter ended June 30, 2006, the banks PAT dropped to Rs 8.01 crore as against Rs 40.36 crore in the corresponding quarter of the previous year. Ghose attributed the lower profit to the sale of investments, absence of income from securitisation and lower volume of bad debt recoveries. In 2004-05, IndusInd securitised Rs 3,700 crore.The securitisation market is not dead yet.

The bank is looking at other strategies to give retail banking a push. During the first quarter, the bank has done vehicle financing worth Rs 1,500 crore. IndusInd will push other retail segments like asset liability management, credit cards, insurance broking and wealth management.

Talks are in progress with international players in wealth management. Insurance broking be done through the banks subsidiary ALF Insurance Services. The company has applied for a license, he said.

During the quarter, IndusInd entered into a strategic alliance with Doha Bank in Qatar. This alliance covers deposit accounts, remittance business loans, wealth management advisory, trade finance, global banking. Through this partnership, IndusInd and Doha Bank will treat each other as preferred partners and promote each others banking services.

Ghose said the bank was looking at similar tie-ups in middle-east, UK, Europe, East Coast of USA and South East Asia.