New Delhi: In the middle of inducting a new strategic partner for its personal loan and mortgage businesses, GE Money India on Wednesday named Iqbal Singh as its new chief executive officer (CEO), and said it expects to close the partnership deal in six-eight months.
Singh would also be the president of GE Money India, a domestic consumer finance arm of the US-based conglomerate General Electric Co.
“Morgan Stanley has been appointed as an adviser for induction of the strategic partner in the personal loan and mortgage business,” Singh said, adding that talks are on with companies both from India and abroad. “We have just started the process...an internal valuation has been done.” Singh declined to disclose a valuation figure.
When asked how much stake it was looking to dilute in the personal loan and mortgage businesses, a wholly-owned subsidiary, Singh said the company was “entirely open” to the issue and it would also depend on the partner.
Incidentally, Singh has been instrumental in a number of partnerships GE Money has signed in the past, including the credit card joint venture with State Bank of India (SBI).
“Finalizing a new partner would be my first priority as the new CEO,“ Singh said. “I intend to establish GE Money as the partner of choice to both consumers and business partners.” In addition to the SBI deal, Singh was also responsible for other partnerships in the Asian region, including the tie-up with Hyundai Motor Co. in South Korea.
Singh replaces Vishal Pandit as CEO from 1 February. Speaking about the objective of roping in a strategic partner, Singh said he expected the new partner to help expand GE Money’s network and customer base for future growth.
GE Money has a strong credit rating and, therefore, the need for capital was not a key factor behind seeking a new partner, he added.
When asked whether the company would be open to the idea of a new partner seeking interest in other businesses, such as credit cards and home loans, Singh said it would depend on how much value such a deal would bring in.
He said the company entered into a tie-up with Life Insurance Corp. of India to enter the credit card market.