Doha Bank to open AMC in India next year

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Thiruvananthapuram, Aug 18 : Qatar-based Doha Bank is making a foray into NBFC segment in India, starting out with an AMC (asset management company) next year. The activities will include brokerage to currency futures.

It is the DBFS (Doha Brokerage and Financial Services) arm of Bank that's geared into this new set of operations, pumping in a token $50 million this year. It would also be the first time that a West Asian Bank is entering India's NBFC sector.

"Feasibility study on AMC is on. Factoring in the delay for clearances, NBFC activities are expected to get going by middle of 2009. By then the market climate too could emerge more favourable," KV Samuel, vice-chairman DBFS and senior manager (Treasury and Investment), Doha Bank, said.

Starting October, Doha Bank is planning to go ahead with its NBFC operations in India, ramping up its current 145 branch network to 300 branches. The new branches will be spread out mostly in Maharashtra and Gujarat.

DBFC has no intention of taking the deposit-mobilisation plunge now, when the arbitrage window is almost shut. On the other hand, the idea is to make the most of the consumer and housing loan segment.

"Within about six months, investors are likely to look for opportunities. Till then, the market dullness may continue," says Prince George, MD, DBFS. For one, the business cycle could take the return trip to the boom, by about six months. Two, the pre-election political flux might stabilise itself. And three, crude prices have already started the downslide.