The Hinduja Group plans to enter the financial services space in India with a bang. Apart from plans to set up life insurance, non-life insurance and asset management companies, the group is also working towards areas such as wealth management, broking and portfolio management services.

The group has finalised its partners for setting up a holding company, which will have three business arms offering wealth management, broking and portfolio management services.

In a three-way agreement, IndusInd Bank [Get Quote] along with AMAS Bank (a private banking entity owned by Hinduja Group in Switzerland) will own 51 per cent stake while the foreign partner will own the remaining 49 per cent in the holding company. IndusInd Bank officials, however, refused to disclose the name of the foreign partner.

In the next stage, the Hinduja Group, through IndusInd Bank and its associate companies and a foreign player will set up an asset management company. An official of the bank said, "We are in talks with two to three foreign players which are in various stages of discussion."

For setting up the life insurance company, Hinduja has hired a consultant to assess initial potential in life insurance. According to sources, at some point of time, the group was also in talks with Massachusetts Mutual Life Insurance Company.

According to analysts, since IndusInd Bank does not have a strong capital adequacy ratio it will not be a major shareholder. IndusInd Bank may hold five to 10 per cent stake or act as a distributor for the life insurance company, said the analyst.

"The life insurance foray will be beneficial for Hinduja as well as the bank. It is, however, somewhat premature for us to speak on the matter partly because the initiative is more of Hindujas," said Bhaskar Ghose, managing director and CEO of IndusInd Bank.

Ashok Hinduja, chairman, Hinduja Group India said, "Insurance is a logical extension to our business as we own a bank. We are working on the life insurance foray which will be followed with entry in non-life insurance."