Bank Muscat chief executive officer India Samit Ghosh said that since it started operations in September, it has over 300 customers. It has also managed to forge alliances with three major corporates and would cash in on the large Omanese student population in the garden city. He further said the bank plans to be a major player in the treasury segment with a special focus on government securities and bank placements.

As far as interest rates are concerned, Ghosh added, the PLR and deposit rates would be close to the one fixed by new private banks. The bank will pursue further expansion plans in the country only after stabilising the Bangalore operations, he said.

Bank Muscatchief executive Abdulrazak Ali Issa said the bank has projected a 25 per growth in net profit for the current fiscal ending in December. The bank, which has a representative office in Dubai, will soon convert it into a full-fledged branch and also foray into countries like Egypt and Yemen. The start-up capital for the Bangalore operations was $10 million.

On the choice of location, Issa said Bangalore is the silicon valley of India. Besides the Reserve Bank of India is also encouraging foreign banks to set up shop in cities other than Mumbai and Delhi which have a sizeable presence of foreign banks. Bank Muscat was formed from the voluntary merger of Bank of Muscat and Bank Al Alhi Al Omani in 1993 and is one of the largest banks in Oman.