Doha Bank to infuse $25 mn into India biz

The lender has received the RBI's nod to commence operation in the country

Qatar-headquartered Doha Bank has said it plans to infuse $25 million in the initial stage for its India operations and that it was open for inorganic growth in the country. The lender has received the Reserve Bank of India (RBI)’s nod to commence operation in the country.

R Seetharaman, chief executive officer, said the lender would initially operate as a branch for which it got the licence. The first branch is expected to be opened in Mumbai. “Going forward, if we are required to convert as fully owned subsidiary we have no issue to convert,” said Seetharaman.

The bank will further expand in South India, probably in Kerala to start with where most of the expatriates from the Gulf are stationed.

In addition, the lender would like to be present in cities with trade links with Gulf Cooperation Council (GCC) and where there was growth potential, such as in Tamil Nadu, Gujarat and similar areas.

Doha Bank has an exposure of around $1 billion in India and expects to take it to around $5 billion in the next two to three years. Currently, the bank’s business extends to many financial institutions and select corporates in India to whom it offer credit lines for various transactions.

“Initially we are required to bring in $25 million. In the next two years, additional capital as required by the RBI to meet the capital adequacy ratio will be brought in, based on the level of risk assets in the books,” he said.

Doha Bank will focus on corporate banking, SME, retail (although selectively), treasury and trade finance area. “In the area of retail Banking our motto is serve the NRIs well, being a GCC regional bank,” said Seetharaman.

He added the bank was also open to acquisition opportunities and this could be from foreign banks stationed in India deciding to exit from the country due to regulatory pressures or otherwise due to rationalisation of their operations in India.

Seetharaman said that the bank's mission was to promote bilateral trade, investment, banking and finance between India, Qatar and the Gulf.

He also added that India is a large country and it requires banking services to meet the diverse banking needs of its corporates, SMEs. GCC is one of India’s largest trading partner with bilateral trade running into billions of dollars.

The challenge is to the build the right team of bankers with diverse experience and have a set of good/experienced team of bankers and be able to serve the blue chips corporates based on a holistic relationship with them to serve their needs across the globe, he added.

Doha Bank started commercial operations in 1979 and it is the third largest commercial bank in terms of asset size in Qatar. Total assets of the bank stood at $18.39 billion, during the fourth quarter of 2013. Loan Portfolio stood at around $11.29 billion and deposit Portfolio was around $11.68 billion.

Doha Bank got exposure of around $1 billion in India and expect to take it to beyond $5 billion in the next two to three years.

Currently Bank's business extends to many Financial Institutions and select  corporates in India to whom it offer credit lines for various transactions that we deal with them.

Initially Doha Bank will operate as a branch for which it got the licence. "Going forward, if we are required to convert as fully owned subsidiary we have no issue to convert then," said Seetharaman.