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First Gulf Bank (FGB), one of the UAE's leading financial institutions, has stepped up its offering to the country's vast non-resident Indian (NRI) market through a tie-up with India's leading and fastest growing financial conglomerates Kotak Mahindra Group.

The tie-up will benefit FGB's expanding First Wealth client base - customers who utilise the bank's bespoke wealth creation service which provides a comprehensive range of investment products and services tailored to the financial planning needs of local and expatriate clientele.

"Kotak will provide the specialised expertise to deliver specific solutions for NRIs who have distinct demands. NRIs have complex and differentiated needs related to the fact that they are outside their country of origin. These needs, however, present us with a host of wealth management opportunities and we have entered into this agreement to target them with specific services," said Mufazzal Kajiji, Head of Wealth Management at FGB.

The tie-up will enable remittances to go directly from FGB to Kotak, provide access to a dedicated ‘Value Account' which enables holders to hold savings in both banks in UAE Dirhams and the Indian Rupi, gain access to brokerage and insurance products as well as more than 250 India-based mutual funds and offer convenience with cheques being able to be issued on either bank and cleared by the other.

This is in addition to FGB's First Wealth services which also oversee client's other investment portfolios such as health plans, savings and insurance, offering a holistic personal finance management service ensuring unparalleled efficiency.

With the economy growing at over 8% and the Sensex delivering close to a 50% return in 2007, India is fast emerging as a key economic force on the world map.

"We are now the third largest private sector bank in India in terms of market capitalization and have 150 bank branches. Having presented resident Indians with great investment opportunities in the past, we are now keen to offer high quality investment solutions to NRIs and foreign nationals. We are confident that through this alliance between Kotak and FGB we shall be able to complement each other's efforts to present the best investment opportunities to the investors in the UAE ''said Somer Massey, Director International Business.

The move is also a further widening of FGB's product and client base as it continues its drive to evolve into a full-service, international financial institution.

Notes and contacts

About First Gulf Bank (www.fgb.ae)

First Gulf Bank (FGB) is one of the largest equity based banks in the UAE with shareholders equity at AED 9 billion at end 2006. Headquartered in Abu Dhabi, FGB was established in 1979. FGB provides financial services across the UAE with a wide distribution network of branches in different business and industrial areas. The bank offers a variety of financial services in Corporate Banking, Treasury and Investment, and Retail Banking Services. The bank focuses on providing financial services and solutions to different target groups in the market like Private and Public institutions and retail customers.

With a philosophy of making a difference in every sector it serves, FGB provides and optimises value to its shareholders, customers, and employees. The bank's core purpose is to be a world class organisation maximising value for all stake-holders. The belief in innovation, quality, customer service, team spirit, & integrity has led the bank to tremendously expand its business operations over the last three years and thereby increase its profit returns and shareholders' earnings.

Fitch Ratings has affirmed the banks's ratings at Issuer Default 'A' with stable outlook, short-term 'F1', individual 'C' and support '1'. The individual ratings reflect FGB's sound capitalisation, growing franchise and good profitability and liquidity. FGB's results for 2006 showed an improved performance with reported net income of AED1.5billion, equating to an average return on equity of 18.3%. The bank benefits from increased opportunities in the UAE to grow its loan book and fee income.

About Kotak Mahindra Group

Established in 1985, the Kotak Mahindra Group is one of India's most reputed financial conglomerates. In February 2003, Kotak Mahindra Finance Limited, the group's flagship company was given the license to carry on banking business by the Reserve Bank of India (RBI). This approval created banking history with Kotak Mahindra Finance Limited becoming the first company in India to convert to a bank.

The group now has a net worth of over Rs. 52,300 million/ US$ 1.3 billion, employs around 15,300 people in its various businesses and has a distribution network of branches, franchisees, representative offices and satellite offices across 340 cities and towns in India and offices in New York, London, Dubai, Mauritius and Singapore. The Group services around 3.2 million customer accounts.

Kotak Securities is the stock broking arm of Kotak Mahindra Group. With a market share of approximately 8.5%** of daily volumes, it is India's leading stock broking house. Kotak Securities processes over two lakh secondary market trades everyday and manages a huge equity asset pool of over Rs. 2,299 crores.

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