Andhra Bank plans insurance JV, to expand overseas biz

Andhra Bank plans insurance JV, to expand overseas biz
PTI
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First Published: Thu, Aug 16 2007. 04 51 PM IST
Updated: Thu, Aug 16 2007. 04 51 PM IST
Kolkata: Andhra Bank is planning a major expansion in its foreign business and working on a joint venture alliance for foraying into insurance sector.
“We are currently present in Dubai and have drawn up a roadmap for a greater overseas presence in USA and Middle East. A joint venture subsidiary in Malaysia is also underway with Bank of Baroda and Punjab National Bank,” chairman and managing director K Ramakrishnan told reporters here on 16 August.
“We have already applied with US regulators for a representative office in New Jersey. We also wish to expand in Kuwait, Saudi Arabia, Oman and Qatar of Middle East,” he said.
The bank will be able to tap the huge potential of Indians working in the Middle East after opening offices in the Gulf nations.
Speaking about the insurance foray, Ramakrishnan said: “We want to enter the sector as both life and non-life insurance are lucrative.”
“However, we will be do so by forming or joining an alliance. We are scouting for a foreign partner,” he added.
Asked about the fund raising plan during the year, Ramkrishnan said the bank expected to raise at least Rs400 crore in Tier II capital.
“We have a headroom of Rs3,000 crore in both upper and lower Tier II bonds. And, we will not have any problem for the next two years. But, we do not have scope in Tier-I capital as government holding has reached 51%,” he said.
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First Published: Thu, Aug 16 2007. 04 51 PM IST
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