Mumbai : Qatar-based Doha Bank is planning of expanding its presence in 12 different locations in the country in the first phase of expansion. As for second and third phase, it will add six branches each. Expansion is subject to regulatory approvals.
The bank will be applying to operate as a wholly-owned subsidiary (WOS), stated chief executive officer R Seetharaman in a press conference. He also added that the lender has received approval from their board for its 12 branches in India. It will summit the application to Qatari regulator in next two-three months. Post Qatari regulatory approvals, the bank will submit it to Reserve Bank of India (RBI). “Our long-term plan is to make a subsidiary in India and we have informed the RBI about it as well. I think we will take up to three years to turn ourselves into a WOS,” added Seetharaman.
“It is our game plan.”This expansion will be across tier I and II cities. These retail branches will meet the priority sector requirements as per RBI regulations, he affirmed. He hinted SME sector as their focus areas.
Keeping in mind its Cochin branch, he said, “Our expansion will be based on synergic model which is our primary target and then we will also look at growth opportunities.” Seetharaman also added with 45 per cent of NRIs based in Gulf coming from Kerala, it was critical to have a branch in Kerala.
He revealed that Doha bank has remitted Rs 3,200 crore of remittances last year. The bank has a fund and non-fund based credit exposure of Rs 600 crore. Seetharaman stressed that the bank will invest in the country as and when required.
As of now, only one branch of the bank is fully functionally and others will be completely operationally soon, he clarified. Sitharaman pointed that it is looking at all options to relocate one of its Mumbai branch which was acquired as part of its acquisition of HSBC Oman’s network.
Keeping in mind World Cup 2022 which will be hosted by Qatar, Seetharaman said that there will be lot of construction work that will take place. He stated that Qatar will turn to India for human capital. Indian SME and EPC (Engineering, Procurement, Construction) companies will have a bigger role to plan.
“There will be plenty of opportunities that will be building up between India and Gulf,” he reiterated. As of now, there is USD 100 billion worth of bilateral trade between India and the Gulf.
