The Hindu Business Line : Andhra Bank may start US operations in April

We will also consider upgradation of the representative office into a branch in a very short time. — Dr K. Ramakrish-nan, Chairman and Managing Director

G. Naga Sridhar

Hyderabad, March 12 Andhra Bank, one of the few Indian banks to obtain permission from the US authorities in the recent past to set up an office in that country in the last five years, will be beginning operations at its representative office in New Jersey in April.

The bank’s premises in New Jersey is ready and it is currently awaiting approval of visas for its staff. “If all goes well, we wish to start our US operations on April 15, which is yet to be confirmed,” Dr K. Ramakrishnan, Chairman and Managing Director, Andhra Bank, told Business Line here on Wednesday.

The 83-year-old bank would start its operations with two officials, one assistant general manager and a Scale IV functionary. “At the initial stage, the main function of the representative office will be liaisoning with the large numbers of non-resident Indians (NRIs) living there. We will also consider upgradation of the representative office into a branch in a very short time,” Dr Ramakrishnan said.

The business strategy of the Hyderabad-based bank for the US will be fund transfer, deposit mobilisation through liaisoning, with a strong focus on NRI businessmen. “NRIs working for information technology companies and the business community hold good potential. As a big chunk of these NRIs are from Andhra Pradesh, our bank will have an added advantage,” the CMD explained.

With a total business potential of about Rs 75,500 crore, the bank is also keen on acquiring a global image with operations in the US and Gulf region. Its application for launch of operations is currently being examined by the Saudi Arabian authorities.

On approval from the US, Dr Ramakrishnan said the presence of many NRIs on the East and West Coast of the US was a strong point for the bank, which is the first Indian bank in New Jersey.

The RBI Deputy Governor, Mr V. Leeladhar, had pointed out in an address in November 2007, that during the five-year period up to October 2007, the US did not authorise any office of the Indian banks in the US territory, vis-À-vis the requests from the Indian banks for setting up three branches, two subsidiaries and nine representative offices.

Some of the requests have been pending with the US authorities for more than five years. Subsequently, SBI and ICICI Bank have received regulatory approval from the US to open a branch each.

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Andhra Bank may start US operations in April