Allianz takes new route for banking foray

The Allianz group, the German financial services major, is leaving no stone unturned to secure a banking licence from the Reserve Bank of India (RBI) through its subsidiary, Dresdner Bank.

The move follows the RBI's rejection of the group's proposal to let Dresdner Bank predominantly use the Allianz brand in India.

The RBI had declined to issue a banking licence to Dresdner Bank, which was seeking to operate under a joint brand called Allianz Group Dresdner Bank.

The group's intention was to focus on the name Allianz and not Dresdner, and capitalise on the Allianz brand awareness in India because of its insurance ventures "� Bajaj Allianz General Insurance and Bajaj Allianz Life Insurance Company.

The RBI had objected to such cobranding and asked Allianz to focus on the name Dresdner Bank. Allianz had earlier proposed to have Allianz group in bigger and bolder fonts and the latter part, Dresdner Bank, in smaller fonts. Allianz has now drafted an alternative proposal.

Sam Ghosh, country manager of Allianz and CEO of Bajaj Allianz Life Insurance, said, "RBI has asked us to come back with several (alternative) options. We are changing the wordings around and redesigning the logo and using different fonts. We will be suggesting to be allowed to use "part of Allianz group" in brackets along with the name Dresdner Bank. We will be forwarding various logos and RBI will then decide on which one to approve."

Allianz is upbeat on starting retail banking business in India after signing its third joint venture with Bajaj group earlier this month, a distribution company to sell financial products such as mutual funds, credit cards and home loans.

Dresdner Bank, which the group acquired in 2001, was operating through the branch banking route in the country earlier. Dresdner Bank surrendered its branch licence after withdrawing from the Indian market and now has only a representative office. In its new avatar, it is planning to enter retail banking.

This is not the first time a foreign group is planning to enter the Indian banking space through its banking subsidiary. Prior to Allianz, GE Money, earlier known as GE Countrywide, did the same.