IL&FS in talks with private banks for alliances

IL&FS Investsmart has entered into negotiations with a few private banks for bank alliances. The negotiations are in the stages of conclusion, and the company is expected to make announcements in this regard shortly.

Besides, IL&FS Investsmart is proposing to invest in subsidiaries like IL&FS Investsmart Commodity Broking Limited (Rs 15 crore) and IL&FS Investsmart Insurance and Risk Management Services Limited (Rs 2.5 crore) as part of its growth plans.

Speaking to mediapersons in connection with the company's public offer, Sandeep Presswala, chief operating officer (retail business), IL&FS Investsmart, said that they would like to get into all financial products segments that involve cross-selling.

"Many banks are sitting on large customer databases. We believe that we can offer a bank's products to customers according to their needs. A lot of serious work has already happened in this area and we have reached the stage of concluding the deals."

"Besides, we already provide insurance broking and insurance training services and intend to invest more in insurance, commodity and internet technology that are slated to be our growth areas," Presswala said.

The company will also be investing Rs 16 crore on expanding its branch network from 30 to 47 besides setting up five overseas branches in Singapore, Hong Kong, Dubai, London and New York.

This will involve a cost of Rs 16 crore. This apart, Rs 25 crore will be spent on technology and business continuity planning.