| Centurion Bank of Punjab (CBoP) will set up a separate company, CERMA, to foray into trust, will and real estate management services.
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| CBoP will have 20-30 per cent stake in the company, Shailendra Bhandari, managing director and CEO, CBoP, said. Solicitor firms will hold the remaining stake in the company, Bhandari added.
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| The new entity is likely to be formed in a few weeks’ time. The new services are meant for middle class, upper middle class and high networth customers.
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| CBoP is likely to fix a minimum relationship balance of Rs 1 lakh for providing the services to customers. While solicitor firms will structure the property documents, the bank will provide the custodian services.
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| The company would also act as an executor if customers desire. The company will charge a nominal fee. Although the fee structure is yet to be finalised. It may depend on the value of property or the jobs executed.
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| According to CBoP, there are 1 million customers for such services. Centurion Bank of Punjab is also picking up 30 per cent stake in a proposed asset reconstruction company, International Asset Reconstruction Company (IARC).
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| Bhandari said City Union Bank was also likely to pick up 30 per cent stake in ARC, which has received the in-principle approval from the Reserve Bank of India (RBI). |
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