State-owned Bank of India is targeting international business of $1 billion ($500 million deposits and $500 million advances) by March next year. For the next three years, the bank has set an ambitious target of $4 billion (equal distribution of deposits and advances).
Rajneesh Karnatak, MD & CEO, BoI, inaugurated the lender’s International Financial Services Banking Unit (IBU) in the GIFT SEZ area in Gandhinagar on Wednesday.
Speaking on the occasion, Karnatak said, “BoI already has a robust international presence and this IBU at the Gift City is another star to its cap. With this new branch, the Bank of India has a presence in 15 foreign countries through 21 foreign branches, 4 foreign subsidiaries, one joint venture and one representative office.”
The BOI-IBU will provide a range of global banking solutions, external commercial borrowing (ECBs), trade finance facilities, foreign currency loans, syndication loans (origination, underwriting & distribution), foreign currency deposit account -current & term deposits, besides offering digital banking facilities through transaction based internet banking facility, to various clients allowed as per IFSCA guidelines.
“The bank will cater to the financial services requirements of Indian corporates that have presence in foreign countries or have joint ventures with foreign corporates. It will also provide services to the international banks, financial institutions and foreign corporations who are doing business in India. Currently the worker strength in the unit is of 10 banking professionals with the experience of forex and international business. The strength of the employees will increase according to the growth in the business of the IBU.”
Karnatak also said the bank is aiming for a 10% deposits and 12% advances growth. “According to our March 24 guidelines we are aiming to achieve 10% deposits growth and 12% of advances growth. To achieve that without having any problem, the bank has closed 10 of its foreign branches and rationalised as many branches.”
The bank also inaugurated an NRI call centre at Gift City, the working hours for which will be from 7 am -10 pm. The NRI customers who have their accounts with the bank can call at the helpline to get their grievances adressed.
Reacting to the share and growth of international business, he said, “Currently the share of international business in the total business of the bank is around 15%.”