UAE lender NBAD to enter India before end of 2014 - sources

ABU DHABI Wed May 21, 2014 7:25pm IST

A view of a branch of National Bank of Abu Dhabi along Khalid Bin Al-Waleed Road in Dubai February 3, 2010.REUTERS/Mosab Omar/Files

A view of a branch of National Bank of Abu Dhabi along Khalid Bin Al-Waleed Road in Dubai February 3, 2010.

Credit: Reuters/Mosab Omar/Files

Related Topics

Stocks

   

ABU DHABI (Reuters) - National Bank of Abu Dhabi (NBAD.AD) plans to set up a regional financial base in India before the end of this year as part of its overseas expansion strategy, two sources aware of the matter told Reuters on Wednesday.

The largest lender by market value in the United Arab Emirates is the first Emirati bank to be granted a banking licence in India since 1980. It joins two other UAE banks, Abu Dhabi Commercial Bank ADCB.AD and Dubai's Mashreq MASB.DU in having operations in the country.

"NBAD has got approval from the Reserve Bank of India, opening the door for business there," one of the sources said. The second source said the bank planned to set up operations in India’s commercial capital, Mumbai, in the second half of 2014.

An NBAD spokesman declined comment.

NBAD chief executive Alex Thursby identified Mumbai as one of the major cities to set up a banking hub in emerging markets, as part of the bank’s overseas expansion strategy, when he took over as the bank's head in July last year.

The eight banking hubs will be in Abu Dhabi, Mumbai, Lagos, Singapore, Hong Kong, London, Paris and Washington DC.

Like other banks in the Gulf Arab nation, NBAD, which is nearly 70 percent-owned by the government of Abu Dhabi, is keen to expand overseas due to stiff competition in the local market.

Thursby warned last month that the bank's profitability in coming quarters would be squeezed by fierce competition combined with global interest rate pressure, after the bank posted a flat year-on-year profit in the first quarter.

(Reporting by Stanley Carvalho; Editing by Mark Potter)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Scotland Referendum

Scotland Referendum

Scots vote in record numbers, await independence verdict.  Full Article 

India-US Diplomacy

India-US Diplomacy

Obama to nominate Indian-American Richard Verma as India ambassador - congressional source.  Full Article 

GMR in Nepal

GMR in Nepal

Nepal clears India’s GMR plan for $1.4 bln hydroelectric plant.  Full Article 

LIC on Markets

LIC on Markets

LIC chairman bullish on Indian markets  Full Article 

India Rains

India Rains

Monsoon rains weaken as late retreat looms.  Full Article 

Ellison Quits

Ellison Quits

Oracle's Ellison steps aside, co-CEOs Catz and Hurd take over.  Full Article 

Infosys-Huawei

Infosys-Huawei

Infosys partners with China's Huawei for cloud-based services  Full Article 

Gold Outlook

Gold Outlook

Gold imports seen up, premiums likely to double on festive buying  Full Article 

Trade Dispute

Trade Dispute

U.S. to press India on trade row during Modi's Washington visit  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage