The Telegraph
Since 1st March, 1999
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ABN Amro mulls home-loan foray

Calcutta, May 22: ABN Amro Bank will enter the home-loan business in the third quarter of this fiscal.

The bank also plans to tap the capital market with an IPO ranging between $ 100-200 million for its asset management company floated recently.

ABN Amro is also applying to the Reserve Bank for 10 licences to open branches in India.

Romesh Sobti, executive vice-president and country representative–India, said: “We are into auto loans, personal loans and loans against securities. We have now decided to enter home-loan business and are busy setting up the infrastructure.”

The bank is, however, not keen to take over the home-loan portfolio of any non-banking financial company.

“The reduction in risk weightage on housing loans and the tag of priority-sector loans attached to mortgage-backed securities has prompted us to enter this business. We will offer a whole range of mortgage-variant loans to customers,” said Nitin Chopra, senior vice-president and head of consumer banking.

ABN Amro Bank had entered the retail segment by acquiring Bank of America’s business. According to Sobti, the client base in retail business has grown by 70 per cent (including the credit card business). The bank has already appointed a chief executive officer for its asset management company — ABN Amro Asset Management Company.

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