Qatar's Doha Bank to set up first branch in Mumbai

According to Gulf news, Doha Bank is the only Qatari Bank to obtain a banking licence in India

Qatar-based Doha Bank, which had yesterday announced that it has got the RBI license to start operations in India, will open a branch  in Mumbai in 2014-15 to offer diversified banking services, particularly in the wholesale space. The bank would leverage funds in the Gulf to  offer  them to  Indian corporates, particularly small and medium  enterprises.

When contacted, Doha Bank chief executive officer R Seetharaman told Business Standard,"it (banking operations) would start from the next financial year."

He said banking operations would be in Mumbai  to  begin with and will have a diverse business model.

"Ours is a diverse business model. We will  reach  out wherever it is required," Seetharaman said.  

He said the operations  would primarily be in the wholesale, but the retail would  also be part of integrated product." We  will  try to replicate our model in terms of e-banking," the bank  CEO said when asked what would be  the focus in the retail segment.

When asked  whether the bank's decision to start operations next financial  year is linked with coming  general elections, he said political factors  has nothing to do with the lender's move.

Where will  the bank  go after opening a branch in Mumbai?

To the query, he said,"It depends. The idea is to support the bilateral banking."

There is growing opportunities in gulf states, which are a $1.6 trillion bloc as good as India's GDP.

He said countries in Gulf Cooperation Council (GCC) has current account surplus, investible surplus.

"That is where Indian corporates can leverage, India's small and medium companies  can leverage. That is precisely the opportunities for Indians," he added.

Doha Bank is the largest private commercial bank in the state of Qatar.

Besides Qatar,  Doha Bank has operations in other parts  of GCC like Dubai, Abu Dhabi, Kuwait.

The bank will leverage this fact, Seetharaman said, adding cost of funds would be cheaper for Doha Bank vis-a-vis Indian lenders.

Yesterday, Doha Bank chairman Sheikh Fahad Bin Mohammad Bin Jabor Al-Thani had said in Mumbai that the lender has been granted license to commence banking operations in India.

Seetharaman said there is a large diaspora of Indian population in Qatar and that various Indian companies are active in infrastructure projects.

He said the license will pave the way for the bank to support all expatriates with the best in class solutions especially remittance solutions.

Indian diaspora is likely to remit  around $10 million in 2013 using Doha Bank facilities , he said.