According to the banks chairman and managing director, Cherian Varghese, We will shortly apply to the Reserve Bank of India (RBI) for approval to introduce the inward remittance facility for NRIs. The internal ground work has been completed. We hope to be able to launch this product in the next couple of months.
By launching this product, the bank hopes to woo a sizeable NRI population. It will offer funds transfer to its own customers as well to those having accounts with other banks.
Meanwhile, the bank is preparing itself to spread its wings overseas. The rationale for the overseas foray is to offer banking services to expatriate Indians as also domestic corporates, who are increasingly looking to set up shop abroad.
In this regard, the bank has appointed the Boston Consulting Group (BCG) to draw a road-map for having an overseas presence. BCG will study various parameters regarding feasability, mode of representation, identification of geography based on the amount of business the bank is likely to service and regulatory approval from the foreign regulators. Said Mr Varghese: BCG will submit its report in December. We will decide on the countries and mode of representation like a branch or a representative office based on the recommendations of the report. Explaining the rationale behind the banks desire to go abroad, Mr Varghese said: Trade is an important element while considering overseas presence. With more and more Indian corporates going abroad, the bank would like to explore the business potential offered by their migration.