Satyam Info, ICICI Bank tieup's realm may be extended to include ICICI group
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The ICICI Bank-Satyam Infoway relationship may soon be extended to the whole ICICI group. Though the memorandum of understanding between ICICI Bank and Sify restricts the partnership to online distribution and marketing of retail banking products and services of the bank, officials of both ICICI Ltd and ICICI Bank do not rule out extending the concept for synergising ICICI's retail marketing network for financial products with Sify's buyer-to-seller website.
It is also learnt that Sify has emerged as a front-runner for picking up an equity stake in ICICI Bank. Top ICICI Bank officials met on Friday to discuss this issue and enhancing the newly developed partnership. A Crucial factor that may clinch a stake in Satyam's favour is the Reserve Bank of India stipulation directing promoters of private-sector banks to bring down their stake in banking subsidiaries to below 40 per cent "The relationship with Satyam can be taken to any length and we shall endeavour to broaden it, a top ICICI Bank official said.
Sify's chances of becoming an equity holder in ICICI Bank appear strong, as the bank has already made it clear of intending to nurture this partnership into a long-standing relationship. Also, ICICI Bank managing director and CEO HN Sinor has already set an ambitious target of one lakh users for its Internet banking facility - "Infinity". The number of "Infinity" users, which was around 11,000 in mid-November, has risen to 20,000 now.
ICICI is a big player in the debt market and raises substantial amount of funds every year from institutional investors through bond issues, private placement channel and gathers retail debt through safety bonds.
"ICICI is already marketing its bond issues on the Internet through its website. WE also have arrangements with some Internet firms for using their portals for marketing our issues. Having a permanent payment gateway through such a tie-up with Sify cannot be ruled out," a senior ICICI official said. Sify's website Seekand-source.com for online buying and selling of consumer products attracts 30 million page viewers every year. The transactions are online, though payments have to be made physically. Offering bond issues on Sify's website would enable ICICI to reach out a large potential customer base.
Source : MI - Dec 18, 1999
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