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

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

Shares Hit Record

Sensex, Nifty rise to second consecutive record high

Sensex surges 500 points on BOJ easing, L&T gains

The BSE Sensex and Nifty surged to record highs for a second consecutive session on Friday after Bank of Japan's surprise expansion of its massive stimulus programme raised hopes for additional foreign inflows, boosting blue-chips such as Larsen & Toubro.  Full Article 

REUTERS SHOWCASE

Wilful Negligence?

Wilful Negligence?

SEBI piles pressure on Sahara to sell overseas hotels  Full Article 

Indian Economy

Indian Economy

India's fiscal deficit in H1 almost 83 pct of full-year target.  Full Article 

M&M Earnings

M&M Earnings

M&M Q2 net profit down 4 percent, hit by poor monsoon.  Full Article 

Ban on E-Cigs?

Ban on E-Cigs?

Govt considers ban on e-cigarettes, sale of single smokes.  Full Article 

Commodities

Commodities

Silver futures in India hit four-year low on global cues.  Full Article 

BOJ Policy

BOJ Policy

BOJ shocks markets with surprise easing as inflation slows.  Full Article 

Shadow Banking

Shadow Banking

China's shadow banking sector growing rapidly, third largest in world - FSB.  Full Article 

Reuters India Mobile

Reuters India Mobile

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