IDBI Bank Ltd, India's Leading Bank Receives Licence to Operate from DIFCPress Release 03 Jun 2010 11:57 am
DIFC Office is IDBI Bank’s First Overseas Branch
IDBI Bank Ltd., one of India’s leading banks, has received a licence from the Dubai Financial Services Authority (DFSA) to provide a full range of corporate banking services including financial advisory services and syndication of credit from the Dubai International Financial Centre (DIFC).
The bank’s first overseas branch, IDBI Bank’s DIFC office will meet the corporate financing needs not only of its Indian clientele but also of clients in the Middle East.
IDBI Bank is India’s leading provider of project and infrastructure financing. It is the second largest syndicator of loans in India and 4th largest in Asia-Pacific. IDBI Bank aims to foster greater trade and cross-border capital flows between India and Middle East region through its DIFC branch. Using its vast expertise in financing mega projects, IDBI Bank also seeks to support and facilitate industrial development in the region over a period of time.
His Excellency Ahmed Humaid Al Tayer, Governor of the Dubai International Financial Centre said: “By strengthening financial and capital market linkages, India and the UAE have the opportunity to add a vital new dimension to their already strong economic relationship. The setting up of the offices of leading Indian financial institutions like IDBI in DIFC prepares the ground for deeper ties between the financial services sectors of both countries. As a global financial hub that is rising in prominence, DIFC provides a strategic base for Indian financial institutions to tap new promising markets in the region.”
The Hon’ble Minister of State for Finance, Government of India, Mr. Namo Narain Meena said : “In India, IDBI Bank has been a forerunner in the area of industrial financing and has therefore played a pivotal role in financing, developing and nurturing the industrial and financial architecture in India. It is a testimony to the global importance of Dubai that IDBI Bank has now opened its first overseas branch at the Dubai International Financial Centre. Apart from the fact that Dubai is a significant financial and trade hub, DIFC provides the right platform to IDBI Bank to commence its overseas banking endeavors. DIFC provides for modern international level infrastructure, operational support, world class regulatory environment and business continuity facilities.”
Mr. Abdulla Mohammed Al Awar, CEO, of the DIFC Authority said: “The shift of the world’s financial geography towards the east is offering several opportunities for new synergistic partnerships between the banking and financial sectors of India and the UAE. As one of India’s leading banks, IDBI Bank is well-positioned to facilitate greater financial and investment linkages between the two key markets. DIFC offers the bank a stable and growth oriented platform for tapping the banking services market in the region”.
Mr. B.P. Singh, Deputy Managing Director, IDBI Bank said: “Our decision to establish an office in DIFC reflects our strong belief in the vast growth potential of GCC region. The business segment of the UAE has a unique international fabric with Indian businessmen constituting an integral part of that fabric . Our branch at the DIFC would seek to integrate the business interests of the Indian and UAE business communities.
Dubai and DIFC provide us with the ideal strategic base to launch our operations in the region because of its conducive business environment, supportive regulatory framework and excellent infrastructure. Apart from being a hub for the Bank’s regional operations, the Dubai office will also serve as IDBI Bank’s nodal point for raising foreign currency resources from the US and European markets in addition to the Asian markets.”
IDBI Bank’s operations during the fiscal year ended March 31, 2010 resulted in an operating profit of Rs.27.27 billion (USD 607.35 million) and net profit of Rs.10.31 billion (USD 229.62 million). As of March 31, 3010, IDBI Bank has a Capital Adequacy Ratio of 11.31%. IDBI Bank Ltd. is majority (52.67%) owned by the Government of India.