CBA rejects reports of interest in acquiring IAG

COMMONWEALTH Bank of Australia has shot down reports that it is interested in buying Insurance Australia Group to expand its insurance division.

It was reported in Fairfax newspapers yesterday that CBA chief executive Ralph Norris had met with former contentious NRMA director Richard Talbot about a potential takeover offer.

It was claimed that a deal, worth nearly $7 billion, was under consideration by Australia's largest bank, but no formal negotiations had been carried out.

But the speculation was swiftly shot down by CBA in a statement issued to the Australian Securities Exchange early yesterday.

"The CBA wishes to clarify that contrary to the implications contained in media reports it has no current interests, nor has it ever had any interest, in acquiring IAG," the statement said.

However, Mr Talbot said last night that Mr Norris told him during an informal meeting that the bank had examined IAG.

"I have met with Ralph Norris and he has told me that had a look at it (IAG) at $3.40 but they did not feel there was value for them at the price," he said.

Meanwhile, ANZ said yesterday it would open its first Indian branch in Mumbai, focusing on institutional and corporate banking.

ANZ's chief executive for the Asia-Pacific, Alex Thursby, said it was expected that the Indian operations would contribute 10-15 per cent of the region's institutional banking revenue within the next three years.

The branch will concentrate on banking India's 250 largest corporate entities and financial institutions.

Mr Thursby said ANZ would aim to to provide funding to the Indian companies in their offshore expansion plans.

The Indian expansion follows ANZ aggressive rollout in the Asian region.

India's surging inflation rate, which reached 9.1 per cent in May, and slowing economy triggered by lower company expenditure and bad loans, is no deterrent to ANZ's expansion plans.