India's online bank duo: ICICI & Satyam Infoway
By Bill Clifford, CBS MarketWatch
Last Update: 6:01 AM ET Dec 15, 1999 NewsWatch
BOMBAY, India (CBS.MW) -- A pair of Indian companies that a couple of months ago became the first to list shares on U.S. stock exchanges agreed Wednesday to distribute retail banking products and services online.
ICICI Bank, a subsidiary of leading lender ICICI Ltd. (ICD: news, msgs), will set up a joint venture with Satyam Infoway Ltd., one of India's biggest Internet service providers (SIFY: news, msgs), to expand its click-and-brick banking business nationwide.
ICICI Bank said it'll set up automatic teller machines at Satyam access points and Cyber Cafes across the country. It also plans to offer Satyam Internet terminals at its branches.
A range of online retail banking products to be distributed through Satyam's portal site will include savings and current accounts, fixed time deposits and bill payment services, ICICI Bank said in a statement on its parent's Web site. The partners expect the portal-banking marriage to lower the costs and enhance the ease of banking, when and where customers in India desire.
They said the new company will be jointly owned and managed, but did not disclose financial details at the time of signing a memorandum of understanding. The alliance is subject to completing a final contract and regulatory approval.
ICICI, a diversified financial services company, in September became the first Indian entity to list on the New York Stock Exchange. Bank of Tokyo-Mitsubishi (MBK: news, msgs) is the only other Asian bank listed on the NYSE.
Satyam Infoway Ltd., a subsidiary of software firm Satyam Computer Services Ltd., expects to have at least 2 million Internet subscribers by August 2002, up from some 340,000 at the end of this summer. Having recently entered into an agreement to acquire IndiaWorld Communications Private Ltd., which operates some of the most popular Web sites in India, the portal reach when integrated would be the country's most extensive.
Satyam Infoway shares listed on the Nasdaq Stock Market in October.
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