Daijiworld Media Network - Chennai

Chennai, Sep 13: Indian Bank’s plans to enter the life insurance and asset management segments are progressing as scheduled, with the lender set to approach its board for approval, managing director and CEO Binod Kumar said.

The bank is currently seeking board approval for setting up proposed subsidiaries or entering into joint ventures, following which the necessary regulatory and administrative processes will be initiated, Kumar told PTI in an interview.

“It is very much on track. We are in the process of seeking board approval and thereafter initiate other relevant regulatory and administrative processes,” he said.

Kumar said identifying the right partner would be a crucial part of the exercise, as a strong partner could accelerate wealth creation.

“It will take time, say one year or so. Identifying a good partner is the most essential part of that. If you have a good partner, wealth creation is faster,” he said.

He also underlined the strategic importance of subsidiaries and joint ventures, saying they can serve as an important avenue for wealth creation as well as strengthen an organisation’s brand.

Indian Bank is already present in the general insurance sector through a 28.52 per cent stake in Universal Sompo General Insurance Company. The stake came to the bank following the amalgamation of the erstwhile Allahabad Bank in 2020.

Established in 2007, Universal Sompo General Insurance Company is a joint venture involving Indian Bank with a 28.52 per cent stake, Indian Overseas Bank with 18.06 per cent, Karnataka Bank with 6 per cent, Dabur Investment Corp with 12.81 per cent and Japan’s Sompo Japan Insurance Inc, which holds a majority 34.61 per cent stake.

Meanwhile, Indian Bank is looking to expand its international presence and plans to open a representative office in Dubai to tap business opportunities arising from the large Indian diaspora in West Asia.

The bank currently operates a full-service international branch in Singapore and branches in Colombo and Jaffna in Sri Lanka. It also has an IFSC Banking Unit functioning as an offshore or foreign branch from GIFT City in Gandhinagar.

“We are getting good business from our GIFT City branch, including participation in various syndicated loans ... my aim now is to open a rep office in Dubai,” Kumar said.

He noted that a large number of non-resident Indians are settled in Dubai and Indians account for about 33 per cent of the city’s working population.

The bank’s board has already approved the proposal for the Dubai representative office, and it is now seeking the required regulatory approvals.

Kumar also said Indian Bank is exploring the possibility of establishing a presence in Malaysia and Indonesia.