ICICI, SBI to operate in Bahrain, Oman
Monday, 12 January 2004, 20:30 IST
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DUBAI: Two Indian banks can start operations in Bahrain and Oman. The Bahrain Monetary Agency (BMA) has granted an offshore banking unit (OBU) licence to ICICI Bank, India's second largest bank, while giving in principle a restricted full commercial bank licence to the State Bank of India (SBI). Also, Hamoud bin Sanjour al-Zidjali, executive president of the Central Bank of Oman (CBO), said some foreign banks such as SBI had submitted applications to obtain permission to open branches in Oman. He added that SBI had obtained initial permission and would receive the final permission after completing all requirements. The Bahrain central bank has extended a special concession to ICICI Bank to offer non-resident Indian (NRI) banking services in Bahrain as well as to the international market, said Ahmed Abdul-Aziz Al-Bassam, director of licensing and policy at BMA. ICICI Bank, a commercial bank, is the largest private bank in India, with assets of $22 billion. The bank has a network of 550 branches in India, in addition to overseas operations in Canada, the US, Britain, China and Singapore. The BMA has also approved, in principle, a restricted full commercial bank licence for SBI, which will enable the bank to offer NRI services and certain retail services, such as mutual funds and capital market services in Bahrain. The new licence will be in addition to the bank's existing OBU, which was established in Bahrain in 1978. Once the new licence is granted, Bahrain will become the hub for SBI's operations throughout the Middle East. SBI is India's largest bank with assets of about $99 billion. The bank has over 9,000 branches in India, in addition to operations in 30 other countries. "Bahrain continues to attract foreign, regional and local institutions and investors," Al-Bassam pointed out. "It is a demonstration of the excellent reputation the kingdom enjoys as the foremost international financial centre in the Middle East region."
Source: IANS
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