The Hindu Business Line : ABN-Amro Bank on expansion drive

The Executive Vice-President and Country Representative, India, Mr Romesh Sobti, told newspersons here the bank was all set to increase the number of branches to touch 30 by September. The bank will also use what Mr Sobti termed as "pioneering locations'' and target evolving export hubs coming up in various parts of the country to increase its penetration.

On the cards are full-fledged branches in Panipat, an export hub for home furnishings, Tirupur which is well known for its hosiery, and Muradabad. "What we are trying to do with branches in such places is to structure export financing and facilitate business for the exporter by managing his risks and giving him products built around his specific industry and its requirements,'' he said.

The bank's growth plans will see it breaking away from a metro focus to tier two cities and towns, according to Mr Sobti.

Besides increasing its presence in places where it already has branches, the bank is now gearing up for branches in places such as Mangalore. "By March, we will add five more branches taking our strength to 22 branches in 15 cities and by September-end, we increase this to 30 in 20 cities," he pointed out.

Mr Sobti said the bank's experience in Pune, which was otherwise perceived to be a non-metro with modest prospects, has fuelled its interest in tier two centres.

Twenty per cent of the bank's corporate banking business comes from Pune.

The bank is awaiting more clarity on the regulations governing the issue of subsidiarisation for foreign banks so that it gets a level playing field with domestic banks, he said. "We are also awaiting clarity about other regulations and once they are clear, we would like to grow inorganically through acquisitions," he said.

ABN-Amro is also drawing up plans to increase the scope of its micro-lending programme for women in rural India where it works with a number of Dutch NGOs working with women's groups.

Mr Sobti said the bank, which has already covered an estimated 70,000 women, has disbursed Rs 35 crore and now plans to increase the number to cover a million women over the next four years.

"In this period, we want to increase the level of micro-lending to Rs 300 crore,'' he said.

The bank extensively uses technology in the form of the `Simputer' to power its micro-lending initiative. Programmed for five Indian languages, Simputer is extensively used by executives in villages in South India.

The bank is now embarking on a project, which will see it extensively use the Simputer in six districts in eastern Uttar Pradesh and western Bihar to distribute micro-credit through Cashpor, a micro-lending institution.

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