Allianz, which currently offers life and general insurance services through its joint ventures with Bajaj Auto, is believed to have approached regulatory authorities for necessary approval to launch banking business in the country.
The company is upbeat on starting retail banking business in India after signing its third joint venture with Bajaj Group earlier this month to sell financial products like mutual funds, credit cards and home loans.
When contacted, an Asia Pacific spokesperson for Allianz told PTI from Singapore the company was optimistic about India's economic development and given its economic outlook, it was natural for them to take a closer look at asset management and banking businesses as well.
"Customers expect their advisors to offer full range of financial products and Allianz - being one of the biggest financial service providers worldwide, offering insurance, asset management, and banking products in many countries across the globe - is qualified as virtually no other company to provide this range," the official said.
Allianz, which posted revenues of over 101 billion euros and net income of over 7 billion euros in 2006, is currently in talks with various institutions and authorities as part of its plans to enter banking business in India, he added.
A study conducted by Allianz Group Economics, a research arm of Allianz Group, recently stressed that India is on the way to a significant economic power, and risks of investments in India by far are outweighed by opportunities it offers.
The company said it has attained a strong foothold in the Indian market through its two JVs Bajaj Allianz Life and Bajaj Allianz General Insurance, while it has just launched Bajaj Allianz Financial Distributors as a new distribution company.
Asked about the stiff competition in banking business, the spokesperson said Allianz was well positioned in India with its two insurance ventures.
Both companies are second largest in their respective markets and unlike any other private provider, present across the whole country with 200,000 agents, he said, adding that Allianz feels "well prepared to even strengthen our leadership position that we have attained in India."
According to the Allianz Group study, India is on its way to become a significant economic power and enjoys the second highest growth potential in the world after China with average average economic growth of 7.5-8.5 per cent up to 2015.
The factors that buoyed the upward demographic trend are domestic savings, favorable demographic development, increasing industrial production and the swiftly expanding middle class. All these factors are conducive for further growth of banking and asset management businesses.
Robust growth in manufacturing sector would also help more people from the agricultural sector to find employment in industry and construction related segments, the study said.
