ING Vysya has initiated a series of measures to expand its operations in the country. These measures include the launch of new insurance products, mutual funds, integration of its businesses, and a study of its brand.
ING is also negotiating with International Finance Corporation to sell its 5 per cent stake to the group. Currently, ING has a 44 per cent stake in the bank.
"We want to increase our stake to the permissible limit of 49 per cent. In fact, we would like to increase our stake to 100 per cent if the government allows it," Bart Hellemans, deputy managing director of Vysya Bank, told newspersons today.
More From This Section
Meanwhile, the bank's chairman K R Ramamurthy has been replaced by G Mallikarjun Rao, the promoter of the GMR Group and the bank.
The board also appointed Hellemans as the new chief executive officer and managing director of the bank, replacing K Balasubramaniam.
The bank will, henceforth, be called ING Vysya Bank. The amendments have been sent to the Reserve Bank of India for approval.
The management is also planning to integrate the businesses of ING Vysya with the local operations of ING, Peter Smyth, general manager of ING Asia-Pacific, said.
"We plan to bring all our businesses under one umbrella, as customers find it easier to deal with one party," Smyth explained.
The integration could be completed by December end, he added. Smyth said ING Vysya plans to launch mutual fund products and expand its asset management business. He, however, ruled out growth through the inorganic route.
"We have been buying asset management companies elsewhere. But this is not the right time to do so in India," Smyth said.
Smyth said ING Vysya plans to conduct a study of its brand, as it would enable both the customers as well as employees to understand what the organisation stands for.
"It is more like living the brand. Employees would get to know what they need to do both internally and externally," Smyth said.
Smyth said ING Vysya's insurance venture plans to introduce a personal pension product soon. The product is expected to be launched in the fourth quarter of 2002.
He said ING Vysya's insurance venture was performing extremely well. "We are the second largest after ICICI-Prudential both in Bangalore and Delhi," Smyth said.
...may outsource IT requirements to local firms
ING Asia-Pacific general manager Peter Smyth told newspersons that the group may outsource more of its software requirements to Indian companies.
It currently outsources work to Infosys, TCS and NIIT. Smyth said the group is considering a plan to outsource work on maintenance and other hardware-related work to IT companies in India.