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Discuss this article (33 Comments)Indian banks appeal for UAE licences to open branches
by This email address is being protected from spam bots, you need Javascript enabled to view it on Wednesday, 19 August 2009
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The UAE Central Bank is under pressure from Indian expatriates to further open the sector to foreign banks, it has been reported.
Officials from the State Bank of India (SBI) are in active talks with UAE banking officials to open branches in the UAE to serve the Indian population, Emirates Business reported.
Indian expats make up about 33 percent of the UAE population, yet there is only one Indian bank with a licence to operate in the emirates, the paper said.
Venu Rajamony, consul general of India, told the paper: "We would like to enlarge the presence of Indian banks here. SBI is an ideal candidate because it is the largest bank in India."
Bank of Baroda, the only Indian bank with a full UAE banking licence, had some branches in the Emirates, but these have since been closed, the report said.
"We would like to re-open those branches. In addition, there are many other Indian banks, which we would like to see entering the UAE," said Rajamony.
"We believe we can provide worldwide services to the people of the UAE and residents if we are permitted to have full-fledged banking operations here."
READERS' COMMENTS
Disclaimer: The views expressed here by our readers are not necessarily shared by ArabianBusiness.com or its employees.
Enough
Posted by Ashfaq Shuja, Dubai, UAE on Tuesday 25 August 2009 at 18:45 UAE time
This small country is over saturated with banks. In fact we need lesser banks not more.
Posted by Ashfaq Shuja, Dubai, UAE on Tuesday 25 August 2009 at 18:45 UAE time
This small country is over saturated with banks. In fact we need lesser banks not more.
UAE Banking License
Posted by A M Rawof on Tuesday 25 August 2009 at 17:49 UAE time
There are lot of unwanted comments about who will bank with who etc. in reality, deposits & business from Indians are major income source to many western banks., i.e. deposits held by Indians on Swiss Banks, UK offshore banks, UAE, Singapore etc. are much more than what they have with Indian Banks.
However, for low income individuals, it may be attractive for cheaper service charges and minimum balance requirement i.e. cheaper than other banks, and similar to Iranian & Pakistani Banks.
Corporate business & high net worth individuals will remain with their banks. Also, you may aware, there are many Indians Maintaining AED 300,000 min. balance with HSBC Premier banking or minimum balance of US$ 100,000 with CITI GOLD banking, despite Bank of Baroda offers AED 500 minimum balance requirement.
Posted by A M Rawof on Tuesday 25 August 2009 at 17:49 UAE time
There are lot of unwanted comments about who will bank with who etc. in reality, deposits & business from Indians are major income source to many western banks., i.e. deposits held by Indians on Swiss Banks, UK offshore banks, UAE, Singapore etc. are much more than what they have with Indian Banks.
However, for low income individuals, it may be attractive for cheaper service charges and minimum balance requirement i.e. cheaper than other banks, and similar to Iranian & Pakistani Banks.
Corporate business & high net worth individuals will remain with their banks. Also, you may aware, there are many Indians Maintaining AED 300,000 min. balance with HSBC Premier banking or minimum balance of US$ 100,000 with CITI GOLD banking, despite Bank of Baroda offers AED 500 minimum balance requirement.
SBI to be different?????
Posted by vmn, Dubai, UAE on Tuesday 25 August 2009 at 09:29 UAE time
It is unrealistic to assume that SBI would offer a different service than what is available in this market. The banking system in the west are much advanced than in India(am not referring to the regulations), the services, the bureaucracy and the easy lending.
Indian banks are way behind in all aspects. The only good thing about India is the regulations they have in place. However when they operate in UAE, they would have to work based on the regulations of the Central Bank of UAE. I do not understand how people expect the bank to offer better services....
Posted by vmn, Dubai, UAE on Tuesday 25 August 2009 at 09:29 UAE time
It is unrealistic to assume that SBI would offer a different service than what is available in this market. The banking system in the west are much advanced than in India(am not referring to the regulations), the services, the bureaucracy and the easy lending.
Indian banks are way behind in all aspects. The only good thing about India is the regulations they have in place. However when they operate in UAE, they would have to work based on the regulations of the Central Bank of UAE. I do not understand how people expect the bank to offer better services....
Who wants a Bank that follows Prudential norms?
Posted by Madhav Bodas, Sharjah, UAE on Tuesday 25 August 2009 at 08:10 UAE time
Whatever else it may be, Indian Banking system has proved its sturdiness in the current Global Financial Psunami. And that is because most of the Banks were well regulated and followed prudential norms. Why would one like to bring a bank here which may think twice before extending credit. I hope all have seen todays Gulf news article how HSBC has got de-rated by Moody's to a 'C' rating.
Posted by Madhav Bodas, Sharjah, UAE on Tuesday 25 August 2009 at 08:10 UAE time
Whatever else it may be, Indian Banking system has proved its sturdiness in the current Global Financial Psunami. And that is because most of the Banks were well regulated and followed prudential norms. Why would one like to bring a bank here which may think twice before extending credit. I hope all have seen todays Gulf news article how HSBC has got de-rated by Moody's to a 'C' rating.
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