Wednesday, April 22, 2009

IDBI Bank to expand network overseas

IDBI Bank is expanding its network overseas following this soon it will be starting operations in Dubai, Singapore and Beijing in order to establish its presence abroad and facilitate Indian corporates raise overseas funds.

IDBI Bank's Chairman and Managing Director Yogesh Agarwa informed, "We will be opening one branch each in Dubai and Singapore. We also plan to start a representative office in Beijing".

At present IDBI is having 509 branches and 900 ATMs. It has also attained necessary approvals from the Reserve Bank for the opening of 200 additional branches to start during the current fiscal. In fact so far bank does not have overseas presence.

He stated, "Apart from catering to the Indian corporates for raising funds overseas, the trigger to start operations beyond the country's border is to establish our foreign presence, an area which we neglected”.

Mr. Agarwal told bank is expecting to receive approvals from the respective local Governments in the next one to two months and will be starting operations immediately.

"We have the Reserve Bank's permission with us to start operations in these geographies for over one year now," he told while adding that getting paper works ready and necessary approvals was coming in the way.

Public sector lenders like State Bank of India and Bank of Baroda are having sizeable presence overseas through branches and representative offices. Among private sector banks ICICI Bank is leading in the area.

According to analysts since Indian banks were less affected with the global financial crisis, they are in a better position as compared to its international peers to go global and even acquire banks abroad.

Mr. Agarwal, pointed out that at present IDBI Bank is not looking at acquisitions abroad.

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