Doha Bank is planning to expand its operations in India by entering into new segments. The Qatar-based bank had in 2007 acquired a 49 per cent stake in Kochi-based brokerage firm Select Securities.
It is now planning to operate as a full-fledged commercial bank in the country, subject to regulatory approvals.
“ICICI and State Bank of India already have operations in Qatar’s financial centre. We have applied for a licence to operate a commercial bank in India. The feedback from Reserve Bank of India (RBI) is positive and we hope to get the approval soon,” said R Seetharaman, chief executive officer, Doha Bank Group.
The group had applied for a licence in 2005 to start commercial banking operations, but the application is still pending with RBI. Its non-banking finance company — Doha Brokerage and Financial Services — has received the regulator’s nod.
The bank has planned to utilise the existing network of 150 branches of its brokerage arm and kick-start commercial banking services. E-commerce and mobile banking will be its key focus areas.
Currently, Doha Bank has direct and indirect exposure of over $1 billion in India. The contribution of its Indian brokerage arm to the overall income is minuscule, even as it is open to more acquisitions for strengthening its presence in the country.
In the long run, the bank is keen to venture into other segments such as asset management and insurance.
“Year 2010-11 will be very crucial for us as far as Doha Bank’s presence in India is concerned,” Seetharaman said, adding this was the right time to enter the market.
