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ICICI Bank on a selling spree?

08 Sep

ICICI-BankICICI Bank will now be selling one of its non-core businesses to do with point of sale terminals – those machines that merchants use to swipe your credit card during a transaction. The question is that a one off transaction or is it part of a greater strategy?

Chanda Kochhar, CEO of ICICI Bank has said to NDTV that the bank is close to selling its “point of sale” business. For Kochhar and ICICI bank this could mean a shift in strategy, which will involve the bank rethinking its non-core businesses.

Therefore, Kochhar is putting her stamp on ICICI bank taking the financial conglomerate and turning it on its head by re-thinking its non-core businesses. Meanwhile, for starters, ICICI will close the deal to sell its “Point of Sale” business in the next couple of weeks. The business, which comprises of nearly 1.8 lakh “point of sale” terminals, is likely to be sold to KKR promoted “First Data Corp” for a little over Rs 300 crore. It’s a deal, which is now awaiting regulatory approval.

“We are in the process its not appropriate for me to say anything till regulatory clearances come through,” added Kochhar. But even before one deal closes, Kochhar is already looking at strategic options for another of ICICI’s important businesses, the bank’s custodian business. However, ICICI Bank has one of the largest custodian services in India, offering these services to individuals and also the National Stock Exchange.

NDTV learnt from the sources that ICICI is looking at strategic options for its custodian business and is in preliminary talks with Bank of New York Mellon, the world’s largest custodian bank. “We will look at all of our businesses and if we think it makes sense to bring in a strategic partner, then we will look at all options and we will look at all businesses”,

Kochhar said. Along with these businesses, ICICI has also considered the sale of its ATM business. However, regulatory concerns may not allow ICICI to offload that business just yet. But the broader picture for India’s largest private sector bank now seems to be one of consolidating businesses rather than growing them. Source:http://profit.ndtv.com/

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Posted by on September 8, 2009 in Business

 

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