Centurion in realty pitch

Centurion Bank of Punjab (CBoP) will set up a separate company, CERMA, to foray into trust, will and real estate management services.

CBoP will have 20-30 per cent stake in the company, Shailendra Bhandari, managing director and CEO, CBoP, said. Solicitor firms will hold the remaining stake in the company, Bhandari added.

The new entity is likely to be formed in a few weeks' time. The new services are meant for middle class, upper middle class and high networth customers.

CBoP is likely to fix a minimum relationship balance of Rs 1 lakh for providing the services to customers. While solicitor firms will structure the property documents, the bank will provide the custodian services.

The company would also act as an executor if customers desire. The company will charge a nominal fee. Although the fee structure is yet to be finalised. It may depend on the value of property or the jobs executed.

According to CBoP, there are 1 million customers for such services. Centurion Bank of Punjab is also picking up 30 per cent stake in a proposed asset reconstruction company, International Asset Reconstruction Company (IARC).

Bhandari said City Union Bank was also likely to pick up 30 per cent stake in ARC, which has received the in-principle approval from the Reserve Bank of India (RBI).