India-based commercial bank Federal Bank is expanding operations in the UAE.
The fourth largest private sector bank in India is also keen to obtain a banking licence in the UAE, if regulations permit.
“We will be seeking to get a banking ‘capability’ in the UAE to offer more services to our customers and expand operations if the local regulations permit us to do that,” said Shyam Srinivasan, managing director & CEO of Federal Bank, who met Sheikh Nahyan bin Mubarak Al Nahyan, UAE’s Minister of Tolerance and Coexistence.
Federal Bank, which has representative offices in Dubai and Abu Dhabi, is exploring to base in ADGM to tap opportunity for market development and digital banking as the financial centre offers a conducive regulatory and commercial environment to host digital banks and innovative solutions.
“We are India’s finest digital bank and have tied up with many new-gen banks offering complete device-led banking. We add more than 2.5 million new customers every year with our fintech partners,” said Shyam, who was in Dubai to attend an event to celebrate 15 years of presence in the UAE and to launch a new brand campaign ‘Digital at the Fore & Human at the Core’.
“Over the past 15 years, the bank has achieved numerous miles and has played a significant role in the development and growth of the UAE,” he said.
A banking licence will enable the bank to offer normal banking services to its clients in the UAE.
Bank of Baroda is the only Indian bank licensed by the UAE Central Bank, and several major Indian banks, including India’s largest bank State Bank of India (SBI), have presence in the UAE through their Rep Offices, which are not permitted to provide normal banking services such as lending and accepting deposits.
However, the Dubai International Financial Centre (DIFC) allows foreign banks to provided services like deposits, credit, financial advisory, advice on investment deals and syndication, all denominated in US dollar. Indian banks at DIFC are SBI, Union Bank of India, IDBI Bank, Canara Bank and Punjab National Bank.