ABN Amro renewing focus on advisory, wealth management services
21 Dec 2007
Mumbai: ABN Amro India is reported to be re-looking at its plans for a non-banking finance company, in favour of a renewed focus on its investment advisory business.
According to country executive Meera Sanyal, the bank is awaiting a license from RBI to set up an NBFC. The bank has one NBFC, ABN Securities India Ltd, which is only for primary dealership activity. Reportedly, the Dutch bank does not have any plans to merge this NBFC with itself.
Sanyal replaced Romesh Sobti at the chief of Indian operations on 7 December, who moved as managing director of IndusInd Bank.
Sanyal said that ABN Amro shall focus on ''growing the credit card business, investment advisory services, bancassurance and wealth management business.'' She was speaking on the sidelines of the launch of ABN Amro's platinum card, which is targeted at individuals drawing a salary over Rs50,000 a month.
According to Sumant Kathpalia, executive vice president and head of consumer banking, ABN Amro Bank India, cards bring in around 40 to 45 per cent of the bank's total profits, which is why the bank wants to retain its focus on the area. ABN Amro Bank, according to Kathpalia, has a cardholder base of over a million.
Sanyal said that ABN Amro's Indian operations contribute 5 to 6 per cent of the bank's global revenues, and around 35 per cent of the bank's Asia-Pacific revenues.
The bank also plans to add another three branches to its retail-banking network by the end of the financial year, and is currently awaiting licenses for the same. ABN Amro sees a huge opportunity in the retail segment, and has plans to generate around 50 per cent of its revenues through the segment.
