IndusInd Bank ties-up with UAE-based bank
Mumbai, Mar 27 (UNI) IndusInd Bank today tied-up with the UAE-based Union National Bank (UNB) for business opportunities generated by expatriate minority communities, especially NRIs, in the UAE.
With this tie-up, IndusInd Bank will further also look at markets such as the UK, US and South-East Asian countries.
''We will look at those markets where our stakeholders and clients have strong business interests,'' bank's Managing Director Bhaskar Ghose told mediapersons here.
Following this tie-up, ''both the banks will treat each other as preferred partners with reciprocity of business flows and promotion of each other's banking services,'' Mr Ghose said.
Explaining the rationale behind the bank's strategy to forge such tie-ups and set up overseas branches, Mr Ghose said ''having a single or a couple of branches overseas will not benefit IndusInd Bank because we cannot compete with local banks. Besides, the cost of funds will prove very high for us. Hence, our strategy is to spread our wings through strategic tie-ups such as the one with UNB.'' With Indo-UAE trade touching USD 12 billion, this is the opportune time to strike strategic deals, Mr Ghose said, pointing out that ''this strategic alliance marks one of the first steps in IBL's ambitious global plans.'' A major benefit that both banks will enjoy because of this tie-up is that both can access each other's local market without any capital expenditure.
''To set up branches, there will have to be some capital expenditure but in this case, both banks can carry on business without not only having any branches but also not having to spend any capital.
Therefore, there will be no pressure of looking for returns on capital for either of us,'' he pointed out.
IndusInd Bank's UAE customers' strong loyalty, network and business ties will all be leveraged effectively to generate local business for UNB, Mr Ghose said.
The tie-up will cover a range of comprehensive banking services in the areas of retail banking, trade finance, global banking and investment banking.
These will include, among other things, deposits, home loans, mortgage loans, loans against securities, bank guarantees and letters of credit, advisory services, cross-border syndication and wealth management.
''We already have many Indian and NRI customers in the UAE and we are a big player in the structured deals and syndicated loans segment,'' UNB CEO Mohammad Nasr Abdeen said. ''With this deal we expect to improve the overall quality of services being offered to the expatriates, specifically to NRIs in the UAE, by leveraging our mutual strenghs and by introducing innovative products and services across the banking spectrum,'' he added.
IndusInd Bank, with a total assets base of USD 3.5 billion and a net profit of USD 48 million in the country, will soon increase its presence to 121 locations, following receipt of eleven more licences from the Reserve Bank of India.
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