HYDERABAD, FEB 5: The International Finance Corporation (IFC) is interested in picking up stakes in private Indian insurance companies and is also eyeing a role in the privatisation of state-run banks, a top official of the corporation said late on Friday.Peter L Woicke, executive vice-president, told Reuters in an interview that although the IFC was looking at minor stakes in these companies, its participation in the privatisation process would induce other foreigners to pick up stakes."We are quite excited about the potential for privatisation here. We also believe that some foreign participation could provide the Indian market with lot of technology.risk management technology. Our participation will induce other foreigners," he said.India's Parliament recently dismantled decades of state monopoly in the insurance sector by passing legislation that opens the sector to private participation and seeks to allow foreign firms to own up to 26 per cent in private insurance firms. The country'sinsurance sector regulator, the Insurance Regulatory and Development Authority, expects to start issuing licences to private insurance firms by the year-end. Woicke, who is also the managing director of the World Bank, said the IFC was in talks with a few potential entrants for stakes. The IFC's current exposure to India is around $ 650 million and is likely to increase by another $ 250 million by June 2000, he said.Woicke said the IFC would also consider participating in the privatisation of state-run banks by picking up small stakes in some banks. The Indian government is expected to spell out steps towards reducing its stake in the country's 27 state-run banks in its forthcoming budget for the year 2000/2001 (April-March). "We would consider taking participation. Not as a huge provider of capital, but more as a catalyst for other investors to come in," Woicke said.IFC to up stake in Global Trust BankHYDERABAD: The International Finance Corporation (IFC) is likely to increase its stake inprivate sector Indian bank- Global Trust Bank to 13 per cent, a senior official of the corporation said late on Friday."We hold a 10 per cent stake in the bank. We have provided a facility of $10 million as tier-II capital, part of which is convertible. We are considering whether to convert," Rashad Kaldany, director, oil, gas and petrochemicals group and a former director in IFC's South and South-East Asia department told Reuters.He said IFC's stake in the bank would go up by three per cent upon exercise of the conversion option. Global Trust Bank is a new private sector bank started by banking professionals and the IFC has been one of the early shareholders of the bank. The bank's shares ended at Rs 94 on Friday, down 7.50 from its previous close.
