Tuesday, July 12, 2005
IDBI ties up with Watson Wyatt
IDBI Ltd, one of the most trusted brands in the banking sector has firmed up plans to float a life insurance company on its own. Formerly known as the Industrial Development Bank of India, the financial institution -turned-bank has engaged Watson Wyatt to work out a roadmap for its insurance foray and look for joint venture partners. Watson Wyatt is an international consultant, which provides wide-ranging insurance and financial services. The Indian arm of the consultant is headed by State Bank of India Life’s former chief executive R. Krishnamurthy. This strategic tie up is expected to create brand image for Industrial Development Bank Of India's new venture in Life Insurance. IDBI has 131 branches in India and the number will go up to 200 in the current financial year. In the next two years, 300 branches will be added.The brand is aiming at a 25 per cent compounded annual growth rate (CAGR) in the next three years. The growth in retail will be 42–45 per cent. The retail credit is expected to grow from Rs 6,000 crore to Rs 12,000 crore in the current financial year.