Indian Bank's plans to enter the life insurance and asset management segments are progressing as planned, with the bank set to approach its board for approval, according to MD and CEO Binod Kumar. As reported by CNBC TV18, The Economic Times, The Hindu BusinessLine, Business Standard, and Rediff Moneynews, the lender is currently in the process of seeking approval from its board for the proposed subsidiaries or joint ventures, following which other necessary processes will be initiated. Kumar emphasized that identifying the right partner would be crucial, stating that a strong partner can help accelerate wealth creation, with the process expected to take approximately one year. "It is very much on track. We are in the process of seeking board approval and thereafter initiate other relevant regulatory and administrative processes," Kumar told PTI in an interview. Kumar also underlined the strategic importance of subsidiaries or joint ventures for an organisation, saying they can serve as a strong route for wealth creation as well as branding.
Indian Bank is already present in the general insurance space with a 28.52 per cent stake in Universal Sompo General Insurance Company, which came through the amalgamation of the erstwhile Allahabad Bank in 2020. According to the reports, Universal Sompo General Insurance Company Limited was established in 2007 as a joint venture, with Indian Bank holding the largest stake at 28.52 per cent, followed by Indian Overseas Bank at 18.06 per cent, Karnataka Bank at 6 per cent, Dabur Investment Corp at 12.81 per cent, and Sompo Japan Insurance Inc holding the majority 34.61 per cent stake.
Speaking about increasing the bank's footprint in the global arena, Kumar revealed that Indian Bank plans to open a representative office in Dubai to leverage business opportunities offered by the large Indian diaspora across West Asia. As reported by CNBC TV18, The Economic Times, The Hindu BusinessLine, Business Standard, and Rediff Moneynews, the bank currently has a full-service international branch in Singapore and branches in Colombo and Jaffna (Sri Lanka), along with an IFSC Banking Unit (IBU) functioning as an offshore/foreign branch from GIFT City, Gandhinagar. Kumar highlighted that 33 per cent of Dubai's working population is Indian, providing significant opportunities for the bank's expansion. "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 stated. For the representative office in Dubai, the bank's board has already given its approval and the bank is in the process of seeking other regulatory approvals.
Beyond Dubai, Kumar also indicated that the bank is exploring the possibility of having a presence in Malaysia and Indonesia as part of its broader international expansion strategy. According to the reports, Kumar also emphasized the strategic importance of these international ventures, stating that they can serve as a strong route for wealth creation as well as branding. The bank's current international presence includes a full-service international branch in Singapore and branches in Colombo and Jaffna (Sri Lanka), along with the IFSC Banking Unit (IBU) from GIFT City, Gandhinagar.
