Banks rush to take NBFC route to private banking

06 July 2005

Mumbai: A number of banks are opening non-banking finance companies (NBFC). These include BNP Paribas, Centurion Bank and UTI Bank.

The reason fo this is that banks in India can only advise, but not take financial decisions on the customer's behalf, as per government stipulations.

Centurion Bank, which recently merged Bank of Punjab with itself, is also contemplating the option of floating a NBFC.

The bank plans to supplement its wealth management services with asset management services via an asset management company floated by Sabre Capital. The asset management company would offer specialised asset management mutual fund products to high networth individuals (HNIs).

Through this subsidiary the aim would help to optimise the customer's wealth through best use of technology and upgraded customer service standards.

The French Bank BNP Paribas plans to float an NBFC for its discretionary portfolio management services.