| Jammu & Kashmir Bank is planning to double its investment in Metlife India Insurance by investing Rs 100 crore.
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| Metlife India is doubling its capital base to Rs 800 crore and, therefore, Jammu & Kashmir Bank will have to increase its investment in the company to retain its 25 per cent stake.
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| “The bank is planning to have a Global Depositary Receipts issue to up investment in subsidiaries,” Haseeb Drabu, Jammu & Kashmir Bank’s chairman and chief executive said, without commenting specifically on investment in Metlife.
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| He, however, declined to give details of investments in subsidiaries. The bank’s GDR issue is expected to hit the market in September, Drabu said, adding that the size of the issue is yet to be decided.
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| The bank’s investment plans could include a setting up of a stock-broking firm for which it has sought approval from the Reserve Bank of India.
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| It has also joined hands with Standard Chartered Bank for setting up an asset reconstruction company in which it will pick up a minority stake.
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| The Srinagar-based private sector bank is aiming to increase its loans by 35 per cent and deposits by 18 per cent in the current financial year, Drabu said. “In the last two years we were consolidating. But now, we will expand,” he said.
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| “We have not leveraged our balance sheet last two years and now we are going for a full expansion mode.” “We expect the loan book to grow by 30 per cent in the current quarter and most of it is coming from J&K. Unlike other banks which are seeing a decline in loans, we will see a sharp rise.”
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| For the June quarter, the bank is expecting a 30 per cent growth in loans and a 18 per cent growth in deposits. |
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