A few foreign banks from the Middle East are keen to set up operations in the country, in a bid to capitalise on the India growth story. Among them, National Bank of Abu Dhabi and Commercial Bank of Kuwait are planning to foray in to India.
Speaking to FE, Thampy George, senior manager (international banking group, senior relationship manager – Asia), National Bank of Abu Dhabi, said, “In the late eighties, we had approached the Indian regulator for a license to commence our banking operations in the country, but were not allowed. However, we would like to revive our efforts to get the license from the Reserve Bank of India to encash on the country’s vibrant economic growth.”
He added that “doing so will enable us to establish closed contacts with our existing corporate customers in India as we bank with them through tie-ups with various state-owned Indian banks”. National Bank of Abu Dhabi was not averse to retail banking in India as well, he noted.
“Although we believe in going for organic growth primarily, we are open to an acquisition in the Indian banking space, whenever the regulator allows. We will not like to miss out on such an opportunity,” George added.
National Bank of Abu Dhabi is the second largest bank of United Arab Emirates (UAE). It has around 100 branches across UAE and has a balance sheet size of about $40 billion.
The bank’s letter of credit business from Indian companies is currently pegged at over $400 million per annum.
On the other hand, Antoine Saliba, senior manager, Commercial Bank of Kuwait, said, “We see a lot of potential in India. Our long term strategy henceforth would be to open branches in the country. We might buy a strategic stake or go for a takeover of any Indian private bank that is small in size and has the capacity to serve corporate conglomerates as well as retail customers at strategic locations.”
Commercial Bank of Kuwait is the second largest bank in Kuwait. It handles private equity worth over $125 million and a loan portfolio of around $ 1 billion.
Meanwhile Isaac Mohamed, senior manager of the apex lender of Tanzania, Bank of Tanzania, said that at least two local banks in his country currently offer an excellent takeover opportunity to the Indian banks wishing to branch out to Tanzania. This, since the local economy is controlled by people of Indian origin. At present, the only Indian bank that operates in Tanzania is Bank of Baroda.
Eyeing Indian growth
• National Bank of Abu Dhabi to approach RBI for license to commence banking operations
• UAE’s second largest bank is also open to an acquisition in the Indian banking space
• Commercial Bank of Kuwait hopes to open branches in the country