Bank of Bahrain and Kuwait lays out India plans

Don't want to miss the best from Business Standard?

Bank of Bahrain and Kuwait (BBK) is planning to scale up its presence in India by opening one new branch, pump more capital and scout potential partner for credit card and call centre unit.

The banking group of Middle-East is working to open new branch in New Delhi, a fourth branch in India. At present it has three branches- Mumbai, Hyderabad and Kochi.  Abdulkarim A Bucheery, chief executive of BBK, said bank already has relationship with the top tier Indian companies. Now, bank is working to expand presence and increase business.

Plans are underway to provide mortgage product for retail business. While asset base of Indian operations is about $ 260 million, total India linked exposure of banking group is pegged at $ 500 million. Bank intends to atleast triple the size of asset base in the next five years, Bucheery said.  BBK would bring in $ 15 million more 2014 into Indian operations. This is over and above $ 30 million it invested in 2013.

Its business (deposits plus advances) in India grew to Rs 1,388 crore at end of March 2013 to Rs 897 crore in March 2011.  Besides main banking activity, BBK is also interested supporting financial services activities. It is scouting partners for venture in credit card and business process outsourcing segments. We would be interested to set up call centre operations in India in partnership, he added.  

Asked as to when BBK will move India operations under wholly-owned subsidiary, he said bank is closely looking at option. It will wait to see experience of foreign banks which have large presence in India about forming wholly-owned subsidiary (WOS). There are issues like right to repatriate capital which need some clarity. Citi India has conveyed to Reserve Bank of India that at present financial services group does not have plans to set up WOS. 

The banking regulator was hoping to convince a few foreign banks to operate in India through WOS.