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Thu 7 May 2020 11:09 AM

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UAE-based Growmore Group acquires Medicinos Bankas

Lithuania's leading retail bank boasts assets of $395 million

UAE-based Growmore Group acquires Medicinos Bankas

Nitin Shelke, chairman of Growmore Group

UAE-based Growmore Group has bought Medicinos Bankas, Lithuania’s leading retail bank with assets of $395 million.

The acquisitions marks the expansion of the global investment and financial services conglomerate into the European Union.

Backed by diversified revenue streams, a resilient net interest margin and sustained profitability, Medicinos Bankas has healthy fundamentals with a deposit portfolio at $334m. At the end of 2019, the capital adequacy ratio of the bank was at a healthy 17.63 percent.

Nitin Shelke, chairman of Growmore Group, said: “This deal marks a strategic step in Growmore’s vision of evolving into a full-suite financial services conglomerate. Operating in a highly competitive and high-potential market, Medicinos Bankas is well capitalized and has reported continued growth over the years.

“Despite the challenging global environment, we continue to look at growth opportunities with the goal of creating a one-stop shop for the banking needs of our clients while delivering long-term value to all our stakeholders.”

The operations of Medicinos Bankas, including its 51 branches in the country, will continue as normal, with primary focus on lending for small and medium businesses, personal banking services and agricultural lending.

With Growmore focusing on strategic investments in funding SMEs and startups, the company said the acquisition serves as a perfect fit, with Lithuania recording consistent growth in demand for SME funding.

Animesh Saxena, chief investment officer of Growmore, added: “We believe in the tremendous value-add that this acquisition will bring with its strategic location offering us the springboard to further strengthen our footprint across the European Union corridor.”

Lithuania has highly diversified banking operations with fees and commission accounting for nearly 50 percent of the total operating revenue of Medicinos Bankas.

Prior to the Covid-19 crisis that has impacted the world, Lithuania had reported robust economic performance with its Economic Sentiment Indicator surpassing the EU in 2016 and remaining strong above the long-term average at 110. Ranked 11th out of 190 countries in World Bank's Ease of Doing Business, Lithuania’s credit ratings have improved while financial structural reforms have boosted productivity.

Championing the digital era of the future, Growmore has developed and created the one of the world’s first healthcare digital currency. The group is active in the solar energy space, developing a 1GW PV manufacturing plant in India and the UAE.

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