IndusInd Bank, one of India’s new breed of private banks set up by the Hinduja Group in 1994, plans to enter into a joint venture with a “ma...

IndusInd Bank, one of India’s new breed of private banks set up by the Hinduja Group in 1994, plans to enter into a joint venture with a “major global asset management company” to develop a wealth management business, according to reports in the Indian media. The bank has yet to disclose its joint venture partner, but speculation is centred on three names: ABN Amro, UBS and Barclays. “We are in the final stages of closing the deal and will sign an agreement soon,” said Bhaskar Ghose, managing director of IndusInd Bank, in an interview in the local press. The company will market co-branded products to IndusInd Bank customers. The bank has one million retail and about 15,000 corporate clients. Mr Ghose said the new subsidiary is likely to be launched in the second half of 2005. The subsidiary also intends to offer portfolio investment and advisory services. Currently, banks in India cannot participate directly in asset management and advisory services, but setting up a subsidiary will give IndusInd the ability to do so. IndusInd has developed a major business among non-resident Indians and says it wants to also grow this business by entering into strategic alliances with foreign banks. The bank has offices in Dubai and London — major centres for NRI money. “We are planning an arrangement whereby foreign banks can carry out lending and investment business using IndusInd’s branches in India and we will also use their network abroad,” Mr Ghose said. Last week, Fortis Bank entered into an alliance with ICICI Bank, India’s largest private sector bank, to develop both domestic private banking and the NRI market.