Peerless eyes personal finance

Peerless, the Rs 1,121 crore residuary non-banking finance company, looks all set to reposition itself as a personal finance company under a new catch line 'Smart Financial Solutions'.

Besides the slogan, the group is planning to make mutual fund, insurance, equity broking and portfolio management services offerings as a future pillar of its business.

Jayanta Roy, director (corporate planning & strategy), Peerless General Finance & Investment Co, the flagship of the group, informed that the new strategy of the group would be to utilise its 4.19 crore customer base in an optimum way in order to convert itself as a personal finance giant from the leading RNBC of the country.

"We will be in life insurance and health insurance distribution, mutual fund, mutual fund distribution and equity. We may also enter into the PMS (portfolio management service) space at a later stage.

Our group wants to create a new mutual fund investment culture in rural areas," he said. DN Ghosh, outgoing chairman of PGFIL, had cautioned shareholders about the viability of RNBC business model in future in the 73rd AGM of the outfit.

"The shareholders must be prepared to change the current business model and explore the options available for changing the business model viable within the norms laid down by RBI," he said in his address at the AGM. Roy said that the group has taken a cue from Ghosh, one of the stalwarts of banking industry in India.

Roy, who is the son of managing director and promoter S K Roy, said that the it would launch the mutual fund in mid 2008, to be christened as Peerless AMC.

"We have decided not to induct any joint venture partner now. Peerless Security will be the sponsor of the MF," he said. According to him, Sebi is now processing the application of Peerless Securities.

"Our group net worth of Rs 550 crore is much more than required for an AMC. We have already cleared two stages as far as Sebi is concerned," he added.

Ernst & Young will be drawing the roadmap of the group's MF business.

"Our focus will be on systematic investment plans (SIP) for low net worth rural individuals, who do not have access to modern personal finance products," Roy said.