Announcing the company's plans for a foray into banking, David Nissen, CEO and president, GE Money Worldwide, said it would soon start work on getting the necessary regulatory approvals form the Reserve Bank of India.
"Although GE Money has the options of acquiring the operations of an existing bank or starting up on our own, it looks likely that we'll have to go the start-up way," said Nissen
GE's consumer finance businesses were brought under the new umbrella brand called GE Money last December. The company is present in consumer durables, automobiles, credit cards and home loans. Yes Bank was the last private joint venture to receive a banking licence.
According to Nissen GE Money is the second largest business for GE with a total asset base of $150 billion and net profit of $2.5 billion in 2004.
"With more than 20 per cent growth for the last five years, we are a growth engine for GE," he added. The company operates in 43 countries and has banking operations in five European countries and has recently bagged a banking licence in Thailand.
GE Money has joint ventures with Maruti Ugyog and State bank of India for automobile finance and credit cards. The GE-State Bank of India venture has nearly 1.25 million
"As the incomes and the purchasing power of the Indian consumer increases, the retail finance business here is set to grow rapidly and we want to capture a sizeable chunk of the market," said Nissen.
"Our loan products are aimed at medium and high net worth individuals. The self-employed category still remains unserviced and GE Money will reach out to them," said Vishal Pandit, president and CEO, GE Money India.
In 2004, GE Money disbursed loans amounting to $1.2 billion, a 42 per cent increase over the previous year. the company has a 45 per cent share of the consumer durables finance market.
Retail push
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Cash cow: GE Money is GE's second largest business, with a total asset base of $150 billion and net profit of $2.5 billion in 2004
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In India: It has JVs with Maruti Ugyog and SBI for automobile finance and credit cards; the SBI JV has 1.25 million customers
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Market share: In 2004, GE Money disbursed loans worth $1.2 billion. It has a 45% share of the consumer durables finance market
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Starting from scratch: Although GE Money has the option of acquiring the operations of an existing bank, CEO David Nissen says the company will go the start-up way
