IndusInd to float arm for risk foray

IndusInd Bank will be floating a separate subsidiary for insurance broking. Bhaskar Ghose, managing director, said, "We have applied to the Reserve Bank of India for approval for the venture and will be floating a separate subsidiary for the business."

The move was in sync with the bank's initiative in wealth management, where it was initiating discussions with a major foreign partner for a possible venture.

"Within 2006-07, we would form a joint venture with a major foreign name for wealth management. The partners would pump in $10 million in the beginning," Ghose added.

Meanwhile, the bank was at an advanced stage of discussion with few foreign banks for strategic tie-ups.

"The bank would ink strategic alliances with few foreign banks as the one inked with Union National Bank, Abu Dhabi. The strategic destination include the UK, US (eastern coast), South East Asia-mainly Singapore, Hong Kong and Indonesia, and Middle East," Ghose added.

The next strategic alliance was likely to take shape in a month in the Middle East, Ghose confirmed. The bank was also going to set up two offshore banking units (OBU) in the current financial year, he said.

Ghose also said the bank would mop up around Rs 150 crore fresh capital, if Basel II was to be implemented by March 2007.

"The bank would need to raise Tier I capital, in which case we would opt for global depository receipt (GDR). Along with it, we have space to arise Rs 350 crore upper Tier II capital," Ghose noted.