Indian Bank aims to double overseas biz

Indian Bank has set a target to double its international business to Rs 8,000 crore in the next three years.

The bank, which currently operates in two countries, is now planning to open branches into Australia and Hong Kong. It has also commenced a derivative business.

The bank also said it is not planning to seek any money from the proposed $3-billion (around Rs 15,000 crore) loan by the World Bank to the government for recapitalisation of public sector banks in India.

Speaking to Business Standard, M S Sundara Rajan, chairman and managing director, said their international business is around Rs 4,000 crore and the plan is to double it to Rs 8,000 crore in the next three years. The company is currently operating in Singapore and Colombo, he added.

As part of its overseas expansion plan, the Bank is planning to open offices at Sydney in Australia and Hong Kong. He said markets in Europe, US and West Asia are saturated. “We were waiting for the economy to recover in these countries. There is some good sign of recovery now and we are planning to start operations by early next year,” said Rajan.

“We will continue to explore international opportunities,” he added. Meanwhile the bank has commenced its derivative business. In July, this newspaper had reported the bank’s plan to foray into this business.

Rajan said the company had made two transactions worth around Rs 25 crore in Chennai and Derivium International is consultant for the bank.

“We will study the business and by April 2010, we are planning to scale up the business. There is a significant opportunity in this space. It is also risky. In recent days, many banks have burnt their fingers and were taken to court by customers.”

The bank had commenced the service in Chennai and plans to launch it in other centres, including Delhi, Mumbai and Kolkata.