State-run Indian Overseas Bank (IOB) today announced it will soon start a dedicated subsidiary for financial services, which will help it foray into untapped areas such as investment banking, wealth and asset management and augment product offerings mix.
"We will be starting a subsidiary for (equity) capital markets, asset management and wealth management services," the Chennai-headquartered bank's Chairman and Managing Director M Narendra told reporters here.
The public lender will be applying for the necessary regulatory approvals for starting the subsidiary, he said, adding the unit will help the bank increase its products mix.
A slew of lenders like State Bank of India, Kotak Mahindra Bank and ICICI Bank already have a presence in this space. Axis Bank recently entered the space by acquiring Enam Securities.
Till the necessary go-aheads come through, Narendra said, the bank is in talks with leading brokerages for a tie-up to offer online trading services.
In another move, IOB -- which kicks-off its 75th anniversary celebrations next week -- plans to open 25 dedicated branches in urban areas to give loans against gold.
Currently, the 'loan-against-gold' segment is dominated by non-banking entities and Narendra said dedicated branches will help the state-owned lender compete better.
"In existing branches, we are installing machines which will help in loan disbursal...Basically, we want to make the process very fast, so that a borrower can walk out with the money in 15-20 minutes after applying," IOB Executive Director Nupur Mitra said.
