Allahabad Bank to enter overseas market

Kolkata, July 15: Kolkata-based Allahabad Bank has planned to enter overseas markets in South East Asia, including Hongkong and China, while the bank is contemplating to become a non-life insurance company.

The bank has already opened a branch in Hongkong and the next one would be in China, Allahabad Bank CMD A C Mahajan today said.

Allahabad Bank has also launched Reverse Mortgage scheme for senior citizens in four metros, including Kolkata.

Mr Mahajan said the minimum eligibility for this product is 55 years. Reverse mortgage are loan products offered to senior citizens by mortgaging his/her property.

''We will charge fixed interest rate of 11 per cent for three year,''he said.

Meanwhile, the bank-led five-party venture for a non-life insurance company has been waiting for the final approval of the Insurance Regulatory&Development Authority.

'' The final licence is expected by the end of next month following which we are confident that the insurance joint venture would start underwriting policies by December," Mr Mahajan said.

A company has already been formed under the name of Universal Sampo Non-life Insurance Co Ltd.

Japanese insurance major Sampo Japan Insurance Co (Asia) Pte Ltd is the knowledge partner in the venture with a 26 per cent stake, while Allahabad Bank will be having 30 per cent. The other partners will be Indian Overseas Bank (19pc), Karnataka Bank (15pc), and Dabur (10pc), the only non-banking Indian shareholder in the JV.

The Kolkata-based bank, meanwhile, expects to raise around Rs 500 crore through issue of tier 2 bond in the current financial year.

" We have a headroom for a fund of Rs 1600 crore, of which Rs 500 crore would be raised shortly," Mr Mahajan said.

UNI