double branches,eyes Rs 5000 cr biz in two years Mumbai, Jan 25 (PTI) State Bank of Mauritius (SBM), among the few foreign lenders to operate as a wholly-owned subsidiary, is targeting to grow its loan book to Rs 5,000 crore in the next two years and double its branches. Also Read - 378 Carat White Diamond Found in This Mine. Can You Guess The Price?
The bank, which has been operational since 1994 as a branch and has four branches now, had advances of Rs 1,016 crore as of March 2018, according to the data from the RBI. Also Read - The Next Pandemic? Scientist Who Discovered Ebola Warns That New Deadly 'Disease X' Could Hit Humans Soon!
“SBM is targeting a healthy business and a balance- sheet and believes that quality assets of Rs 5,000 crore can be achieved over the next two years,” an official statement said Friday. Also Read - Wait, What? Man Punches a Starving Lion in The Face as It Tries to Eat Him in Botswana, Survives Attack
It is planning to inaugurate four more branches as it seeks to expand its book here.
Visiting Mauritian prime minister Pravind Jugnauth attended an event Thursday evening here where he inaugurated the bank’s business as a wholly-owned subsidiary.
The banks is targeting to support Indian companies investing into Africa across their trade finance needs, and also the India-Africa trade corridor, said the statement.
“This change in our Indian strategy to convert our operations into a wholly-owned subsidiary has as its main objective in building greater proximity with our clients here,” SBM chairman Li Kwong Wing said.
Apart from retail, corporate and trade finance, the bank is also aiming to tap fee-based business in capital markets, trading and stockbroking, asset management and custody services businesses, the statement said.
After the 2008 global financial crisis, the RBI has been pursuing foreign banks to convert into wholly-owned subsidiaries with the intent of ring-fencing the financial system and has come out with specific norms for the same.
So far, only a select few lenders like SBM and the Singaporean lender DBS have become so. This will get them almost equal treatment like the domestic lenders when it comes to branch expansion and taxation and other benefits.
The RBI mandates those with 20 branches or more will not be allowed to expand unless they become fully-owned local subsidiaries. But there are only four three foreign banks- StanC, HDBC and Citi-which have over 20 branches.
This is published unedited from the PTI feed.