IndusInd Bank is looking at taking over assets worth Rs 1,000-1,500 crore from other public sector and private sector banks. These assets will include both corporate and retail assets.
IndusInd Bank's managing director Bhaskar Ghose said, "We are looking at taking over Rs 1,000-1,500 crore from public and private sector banks. We have the appetite and ability to take these up. The assets will be a mix of both retail and corporate loans. The retail assets will be a mix of car loans, two-wheeler loans etc. In the corporate side we are only looking at the AAA companies."
The bank had in the previous fiscal bought loans of around Rs 1,400 crore from other banks of which Rs 900 crore where from the erstwhile ICICI.
"This is a part of the balance sheet management and helps us to match the assets and liabilities. We don't have any deposit of three to four years as most of the deposits are in the range of 6 to 12 months," said Ghose.
Most of the assets which had been picked up were AAA assets. The bank picks up the assets from the other banks for a period of around one year even if the residual period is higher.
The bank has a right to sell back the assets so that it is not saddled with bad assets. The bank mostly sells back the assets to the bank.
The takeover of assets in this fiscal will also include rollover of the loans which were purchased in the previous fiscal.
The bank, meanwhile, has also engaged international consultant KPMG to conduct an enterprise-wide risk management (ERM) exercise and to help in the selection of treasury software solution.
KPMG will advise the bank on developing and implementing an ERM framework covering credit risk, market risk, operational risk, systems risk and other risks. It also encompasses the revamping of the bank's existing asset liability management system.
KPMG will also help the bank to identify and implement an integrated treasury solution for foreign exchange and money market activities covering front, back and mid-office operations.
