French bank BNP Paribas is exploring the possibility of setting up a non-banking finance company (NBFC) in India. It is also not averse to the idea of taking over an existing business for its consumer financing business. The bank is also looking at getting into the asset management business.
The bank's subsidiary, Cetelem, which is into consumer financing, is the largest non-banking company in Europe. BNP Paribas chief executive and country manager Jonathon David Lyon, said: "The bank has started exploratory talks. We are looking at a joint venture or taking over another NBFC. We are also looking to buy out the portfolio of an existing NBFC."
On asset management business, Lyon said BNP Paribas is the third largest distributor of mutual funds. "In 2000, the bank sold Rs 1,100 crore worth of funds, and last year it stood at Rs 1,500 crore. We are looking at either setting up an asset management company or going in for a joint venture. We are currently in talks with several players in this regard.'
The bank is in talks with SBI Mutual Fund to pick up 50 per cent stake. "We want to be an equal partner," Lyon said.
The bank plans to launch broking services for its retail operations. It is also bringing in additional capital for its retail operations. The bank has currently has a capital base of Rs 250 crore inclusive of Tier-II capital.
BNP Paribas is also looking at tying up with a private sector bank. "Even if we own 49 per cent stake in bank our voting rights would be restricted to 10 per cent. We would like to have some control of the bank," said Lyon.
The bank has opened two trade centres in Mumbai and Delhi which are dedicated to financing the international trade with the Indian market. This is a part of the global initiative by BNP Paribas to provide a network of trade finance specialists focussing on international trade for its corporate and commercial customers.
The bank has currently 48 trade centres across the world which will increase to 70 by the year-end. These trade centres are like one-stop-shops which will fund a whole range of products including long- and medium-term export finance, BNP Paribas' head of international trade, Jacques Desponts, said.
