Quatar-based Doha Bank said on Friday it is planning to expand Indian operations by creating footprints in metro and Tier-II cities after converting its business into a subsidiary model. The bank expects to have a wholly-owned Indian subsidiary in next three years.
“Unless we convert into a subsidiary or acquire (branches of other banks), we cannot expand our footprints in India. My idea is to first build a strong brand equity before going for a subsidiary model,” said Doha Bank chief executive officer R Seetharaman.
The bank will need RBI approval to have a subsidiary.
The lender, which started formal inauguration of its operations in India in April, is working with the Maharashtra Chamber of Commerce and The Bengal Chamber to build its brand equity. “We have also spoken to the Gujarat Chamber of Commerce and Industry,” said Seetharaman.
He said about two-to-three years would be needed to convert the bank’s Indian operations into a subsidiary.
At present, Doha Bank has three working branches — two in Mumbai and one in Kochi. It is planning to relocate one of its Mumbai branches to other parts of the country.
The bank is planning to reach out to more Southern states. “Ideally, the bank would prefer to have greater footprint in metro and Tier-II cities of Kerala, Tamil Nadu, Maharashtra, Gujarat and West Bengal,” said Seetharaman.
For its Indian business to grow, SME would be the a focus area for the lender, which said it is lending to SMEs at much lower rates Currently, Gujarat and Maharashtra are the major states for it to grow SME portfolio.
Doha Bank offers funding to Indian companies to invest in Gulf Cooperation Council (GCC) region for their business expansion and growth. The bank’s exposure in India currently stands at USD 2 billion, and wants to double it in the next three years.