State-run Oriental Bank of Commerce (OBC) plans to open a full service branch in Dubai to inrease its trade finance portfolio.
"The bank has got board nod and has applied to Reserve Bank for approval," OBC Executive Director S C Sinha told PTI.
Subsequently, the bank will be approaching the regulatory authorities of United Arab Emirates for clearance.
OBC's full-service branch in Dubai will provide tremendous business opportunity to Indian corporates in terms of trade financing, he said.
Last year, the bank had opened a representative office in Dubai, which helped it get overseas presence, first time after being established in Lahore in 1943.
Other Indian banks including Punjab National Bank and Bank of Baroda have a branch in Dubai as well.
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Indeed, last month only Punjab National Bank opened a branch in Dubai International Financial Centre (DIFC) and is offering services like corporate finance including trade finance, credit for long and medium-term projects and investment related services.
During 2009-10, net profit of OBC increased by 25.32 per cent to Rs 1,134.68 crore, compared to Rs 905.42 crore in the previous year on the back of increase in interest income and fee-based income.
The total income rose to Rs 11,457 crore, compared to Rs 9,927 crore in 2008-09. Operating profit jumped to Rs 2,421.5 crore, up 43.71 per cent.