FirstRand Bank, the second largest bank in South Africa in terms of market capitalisation, on Wednesday said it has commenced retail and commercial banking operations in India. The lender has opened its first branch in Mumbai.
The bank had entered India in 2008 by opening a representative office. In 2009, it received a banking licence from the Reserve Bank of India (RBI) and set up its corporate and investment banking operations. Currently, it has $175 million worth assets in India.
"We are not positioning ourselves as a global investment bank. We are going to remain a regional bank with focus on Africa. There is an increase in trade between India and Africa and we expect it to continue going forward. This makes India a very attractive destination for us," Sizwe Nxasana, chief executive, said.
Senior executives of the bank said, initially the bank would focus on building a liability base in India before offering retail loan products like mortgages and credit cards here. However, because of its experience in commodity-related businesses, the bank would start lending against gold after July.
"Commodities are in our DNA. We understand this business well. Hence, we decided to start lending against gold," Nxasana added.
The bank would request RBI for five to six additional branch licences to expand its retail operation in the country. All these would be opened in Maharashtra. In addition, the bank plans to tie up with business correspondents to strengthen its retail footprint in India.
The bank currently has 90 employees here, of which close to 35 are in its retail division. Its capital base in India is around $75 million.
