The Hindu : Business : GE enters housing finance

Online edition of India's National Newspaper
Thursday, Dec 02, 2004

Business

Business

GE enters housing finance

NEW DELHI, DEC. 1. The U.S. conglomerate General Electric today announced its foray into the Indian housing finance segment aiming at Rs. 1,000-crore business in the first year of operation, and was exploring the possibilities of entering the banking arena as well.

GE has set a separate company — GE Money Housing Finance Company — with an initial capital of Rs. 10 crores and has obtained the approval of the National Housing Bank for entering the fast growing home loan mart, GE Money India CEO, Vishal Pandit, told reporters here today.

He said the company planned to offer home loans at a competitive floating rate of 7.5-8.5 per cent and aims Rs. 600-1,000-crore business in the first year of operation.

GE also announced its foray into the personal loan segment under the brand GE Money Personal Loan.

Unveiling a major brand-building exercise, Mr. Pandit said all retail financial products of GE Consumer Finance would be marketed under the GE Money brand.

He said the existing joint ventures with State Bank of India for credit cards and Maruti Udyog for auto finance would continue.

GE, which runs 17 banks in Europe under the GE Money Bank brand with assets worth $20 billion, has plans to enter the Indian banking segment. "We have started looking at banking. But right now there is nothing on the plate,'' Mr. Pandit said. GE India, which has revenues worth $1 billion, was growing at 20 per cent, its CEO, Scott Bayman, said.

"We are growing our business quickly globally especially in Asia. India is important to us,'' GE Consumer Finance Asia CEO, Ridha Wiirakusumah, said, adding the group has grown by 18 per cent to $120 billion conglomerate mainly through 56 acquisitions worldwide.

PTI

Printer friendly page
Send this article to Friends by E-Mail

Business