NEWS & ADVICE : HOME LOANS
SBI to upgrade operations in Gulf
By Joseph Samson
Oct 20, 2008
Print    Email    RSS   

India's largest lender, State Bank of India is aiming to upgrade its current Gulf operations.

The bank has acquired an upgraded license for its operations in the United Arab Emirates (UAE) from the Dubai Financial Services Authority (DFSA). SBI has got Category 1 license that will allow it to offer corporate credit, accept deposits, arrange credit for investments, and also offer advice on financial products.

Praveen Gupta, SBI's regional head and chief executive for the Middle East and North Africa (MENA), said "The new license will allow us to offer corporate credit both syndicated as well as bilateral."

The bank will launch its new operations from its branch at the Dubai International Financial Centre (DIFC). According to DFSA terms, the branch can now provide credit in currencies other than the local currency, Dirham. It can accept deposits in foreign currencies like the US dollar, euro and pound sterling.

Chief Executive Officer of SBI's branch at DIFC, A. J. Vidyasagar said, "Our services are open to all nationals as we are determined to acquire a more prominent niche as a global player in international banking circles."

The acquisition of the upgraded license will also enable the branch to provide a whole range of corporate credit facilities such as working capital as well as trade finance, both fund-based and non-fund based, said Mr. Gupta.

"Along with these activities, we can also advise on and arrange investment deals and credit," he added.

SBI, which started its operations in the UAE with a branch under a Category 4 license in January 2007, is currently focusing on remittance services through tie-ups with local exchange houses, to full-fledged commercial and retail operations.

The bank has also been given a license to open a branch in Saudi Arabia. SBI is among the very few banks in the world to be allowed to operate independently in Saudi Arabia. Most other major banks of the world in that Gulf country operate in joint ventures with Saudi entities.

SBI which is ranked 57th on a global level, already has a natural advantage of servicing Indian clients involved with trading activity or investments in the Gulf.

There are over 4.8 million expatriate Indians in the Gulf.

The bank is targeting to raise its overseas revenue to 25% from the current 10%.


(Comments Posted : 0) Post Your Comments
Show All Comments
COMPARE QUICKLY
 Select a product:
 

CALCULATE QUICKLY
 Select a product:
 

EDITORS' PICKS
Financial Review: A must for every individual
Home loan rates likely to remain stable
Home Loan or Own Funds: A Classic Dilemma
Income Tax Benefits on Joint Home Loans
Paying back home loans: Which repayment...


PINJORE: CaℒL Giℛℒs In PiNjOrE 09915787550...
PINJORE: CaℒL Giℛℒ In PiNjOrE 09915787550...
how to gate my home loan certificate

NEWS THIS WEEK
Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive