Alpic Group In Recast, Seeks To Enter Banking Sector

The Mumbai-based Alpic group, a leading player in financial services, has chalked out a set of strategies to strengthen its position in the industry. The plan ranges from the formation of joint ventures to seeking an entry into the banking sector.

While Alpic is hiving off its International Banking Division (IBD) into a joint venture company, the group will spin off its consultancy wing -- the International Services Division -- into a wholly-owned subsidiary that will focus on customised research for its international clients. Some European companies have already been shortlisted for the IBD joint venture.

Vice president and joint managing director, Poonam Kumar said: Innovation and a niche strategy helped us gain an edge in the industry and, even at a time when the industry is going through a difficult phase, we continue to go strong.

 

More interestingly, Alpic is trying to make a foray into the banking sector. After having got an in-principle approval from the Reserve Bank of India (RBI) for local area banks (LAB), Alpic has also applied for a private banking licence.

The name of Alpics LAB will be Priyadarshini.

Soon after signing a joint venture with the Allianz Group of Germany for health and general insurance, Alpic is now in the process of entering another joint venture for its asset management business.

Besides, Kumar pointed out that Alpic has been appointed advisor for the infrastructure development by the Orissa government.

Alpic Finance Ltd, the flagship of the group, had a total income of Rs 156.65 crore with a net profit of Rs 24.84 crore in 1996-97, while the corresponding figures were Rs 134.22 crore and Rs 39.43 crore respectively in the previous year.

Other subsidiaries of the group are Alpic-BBK Finance Ltd, Alpic Everest Finance Ltd, Alpic Securities Ltd and Alpic International (Mauritius) Ltd.

About the non banking financial services (NBFC) industry, Kumar said: The industry is undergoing structural reforms which will ensure the emergence of the strong and the sound.

Last year, Alpics total disbursements exceeded Rs 410 crore and the company's asset base increased to Rs 993 crore -- a 55 per cent increase over the previous year.