The Hindu Business Line : IndusInd ties up with Abu Dhabi bank

IndusInd Bank has entered into a strategic alliance with Union National Bank of Abu Dhabi, whereby IndusInd desks will be opened in all the 37 UNB branches spread across Abu Dhabi, Dubai and the other emirates, as well as in Qatar, Bahrain and Oman.

Talking to reporters in Kochi, Mr Bhaskar Ghose, Managing Director of IndusInd Bank said: "The strategic alliance will encompass a wide range of banking services, including deposit accounts, remittance business, loans, wealth management advisory, distribution of third party products, trade finance, global banking and investment banking, including corporate finance, mainly to NRI clients. And both banks will treat each other as preferred partners with reciprocity of business flows and promotion of each other's banking services."

Large NRI base

A prime reason, which triggered the alliance, was the large number of IndusInd Bank stakeholders in the region. The NRIs are expected to shore up business volumes of both UNB and IndusInd Bank. This will be the first such alliance between an Indian and foreign bank. With access to 37 branches spread across several countries, the volume of business generated is also expected to be substantially higher than from opening a single branch in a foreign country, Mr Ghose said. IndusInd already has overseas offices at Dubai and London.

Through this tie-up, the bank would be in a position to offer speedy services to NRIs at grossly discounted rates. All business would be routed from the UNB branches to the RTGS network of IndusInd Bank and would be accessible to corresponding bank branches, which are on RTGS system.

Mulls more similar pacts

The bank is expected to announce a similar tie-up with another foreign bank in the same region, in the next three to four weeks. Since we have similar stakeholder interests in the UK, the US and some South-East Asian countries, we will soon be entering into similar strategic alliance with banks from these regions, Mr Ghose added.

On a reciprocal basis, UNB will have greater visibility, and access to the Indian market through the 127 IndusInd branches spread across the country, without investing huge amounts in capital and building up a branch network. The bank will have a greater pan-Indian presence and be in a better position to decide its future course, when the RBI is expected to throw open the Indian banking industry to foreign banks in 2009, Mr Ghose said.

More Stories on : Alliances & Joint Ventures | Private Banks | Foreign Banks

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