The Hindujas-owned IndusInd Bank is set to enter the insurance sector in September. The bank is at advanced stage of negotiation with a public sector insurance company for non-life insurance products. Talks are also on with a couple of private life insurance companies for providing insurance products.
"We will not develop products and sell them, but will sell non-life product from a PSU and life product from one of the new private players in the country," IndusInd managing director, Bhaskar Ghosh, said.
He declined to reveal the names of the companies. However, the deal with the public sector non-life company is expected to close in two weeks and that with the private life-insurance company in three weeks, he said.
"Now that we have started marketing mutual funds from a couple of private players, we will be able to provide a whole range of insurance products available from these companies," Ghosh added.
"Since we focus on the retail sector, availability of insurance products as well as mutual funds will provide our customers a wide range of options and a whole range of financial products to choose from," he said.
The bank is also expanding its network on these lines. Plans are to increase the total number of outlets, including ATMs, to 100 this fiscal and is also contemplating branch takeovers along with accounts. It is eyeing branches of banks that have either merged or are consolidating network structure.
A total of 25 ATMs, 15 extension counters and 60 branches will be in place by March 2002 and thrust this fiscal has moved away from the relatively risky segment of mid-market and small market companies to top-tier corporates in the public and private sector on one hand and retail business on the other.
IndusInd has also taken over loans from a few public sector banks, specially those with a capital adequacy problem. Meanwhile, Hindujas are expected to scale down holding in the bank to 40 per cent and has already applied to the Reserve Bank of India for an approval.
