IndusInd in tieup talks with foreign banks

IndusInd Bank, one of the country's new private sector banks, has initiated tie-up talks with more than one foreign banks with limited presence here, for a mutually beneficial alliance.

The bank has also decided to set up a subsidiary that will handle all non-banking functions and will especially cater to non-resident Indians (NRI) associated with the bank.

The subsidiary will handle operations such as being the agency to forward travellers' cheques to the bank, arranging for accommodation and travel of NRI account holders and other such functions.

"IndusInd Bank is at present in talks with more than one foreign banks. The talks are in initial stages and our intention is to create an alliance that will be mutually beneficial to both partners," C V Bijlani, executive vice-president and chief credit officer, IndusInd Bank, told Business Standard on Wednesday.

The official added that although the working details of the tie-up will be worked out at a later stage, both banks will be able to use each others' networks and reach for mutual gains. Asked to name the banks with which talks are on, Bijlani said that it was too early to name any bank.

Bank officials said here on Wednesday that Centurion Bank is keen on acquisition of another bank or another non-banking financial company (NBFC), but did not state any names.

It is however learnt that both Centurion Bank and Global Trust Bank are among the banks that IndusInd is looking at for acquisition. IndusInd Bank, which has completed acquisition of two NBFCs in the recent past, is meanwhile looking to acquire another NBFC as well.

"All new private sector banks have grown through acquisitions and mergers. There are instances in India too and IndusInd is looking for such opportunities," Bijlani stated.

Commenting on the arm that will handle its non-banking functions, Bijlani said that this will take a few months to materialise, but it will arrange for travellers' cheques to be delivered and encashed at the bank, tours, hotel stay and the likes.

Sources stated that some private sector banks are also silently doing such business with the aim of servicing their customers, mainly NRI customers, in a more efficient way.