For expanding its business and exploring greater opportunities beyond the home network, UAE’s second-largest lender Emirates NBD is all set to launch its first branch in India.
With an asset of $ 124 billion, Emirates NBD is the fourth largest lender apart from Qatar National Bank, National Bank of Abu Dhabi and Doha Bank, to make open a branch in India.
“Banks from the Gulf region are just following their clients in India in a bid to explore the trade between both the economies, armed with a capital to compete with the banks in the west,” said Shayne Nelson, Group CEO at Emirates NBD.
“History between the UAE (United Arab Emirates) and India is deep. It is India’s third largest trading partner with $38 billion. The size of the population and economic growth here make it an attractive market for us. Also, European banks are shrinking, generating returns below their cost of capital. Gulf banks do not have the same issue. My bank’s capital adequacy is 21 per cent. We are in fact looking for more branches in India,” Nelson said.
Apart from India, the bank also has three branches in Saudi Arabia, a nation that has strong trading ties with India. The bank is expecting to explore this trade proximity between both the countries better as there are no Indian banks in Saudi Arabia.
So far, the lender has invested $ 100 million capital in setting up its Indian branch.