NDB Bank having exited from its insurance arm NDB Aviva, has plans to venture into other parts of Asia using the capital gains it made from this sale, officials said. “We will strike partnerships similar to what we have at present with DBS Singapore, in Dubai and India,” Russell de Mel, Managing Director NDB told [...]

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The Sundaytimes Sri Lanka

NDB eyeing India, Dubai for opportunities

By Duruthu Edirimuni Chandrasekera
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NDB Bank having exited from its insurance arm NDB Aviva, has plans to venture into other parts of Asia using the capital gains it made from this sale, officials said. “We will strike partnerships similar to what we have at present with DBS Singapore, in Dubai and India,” Russell de Mel, Managing Director NDB told the Business Times on the sidelines of a press conference to launch the “Real Saver”, a unique new savings proposition that encourages the regular savers to stay true to the age old virtue of everyday prudence.

In September last year, NDB sealed a memorandum of understanding with Singapore’s DBS Bank in a bid to form a strategic alliance in terms of raising funds for large scale projects. Mr. de Mel said the ongoing development initiatives – specially infrastructure development projects and setting up of large scale projects will need capital and this partnership will help NDB to tap the distribution capabilities of DBS Bank while meeting the capital requirement of NDB customers. He noted that DBS has a presence in the main economic nerve centres of Asia which has now become the engine of growth for the world. “This alliance will give the NDB Group, access to new investors and markets that will surely come to benefit the numerous and large scale projects that will be, and have already been, set up in the country,” he said, noting that by year end, the Dubai and India partnerships which will mirror the NDB DBS partnership will be finalized. NDB already has an investment banking operation in Bangladesh and stake in a leasing company in the Maldives. Mr. De Mel said they may expand the scope of the activities in Bangladesh beyond investment banking. “We are eyeing such regional opportunities and we believe that we don’t need to own equity in entities to strike relationships,” he further said, explaining the exit from the insurance arm, Aviva. Last week American International Assurance Company Ltd (AIA) signed a deal to buy a 92.3 per cent stake in Aviva NDB Insurance for US$109 million, from British insurer Aviva The total net consideration payable by AIA to NDB is $109 million (Rs14.2 billion) including the bancassurance agreement and the sale of Aviva NDB Wealth Management Ltd. NDB Group would receive a net amount of $59 million or Rs 7.7 billion from this transaction, while from the sale of shares NDB would receive some $59 million.

When asked about whether NDB has plans to exit its leasing arm in Maldives, Mr. de Mel said that they are trying to raise capital by selling a part of that stake. He added that NDB has 35 per cent in this leasing business, while IFC owns 25 per cent. “This needs recapitalization,” he said.

 

 

 

 

 

 




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