The Hindu Business Line : South Indian Bank bid to bridge NRI gulf

SOUTH Indian Bank is concluding new arrangements with correspondents in some Gulf states as it plans to diversify its portfolio and also widen access for its large NRI clientele in this region, according to the bank's Chairman, Mr A. Sethumadhavan.

Mr Sethumadhavan, who is in the UAE to interact with correspondents and customers as part of a tour of Gulf states, told Business Line that an MoU had been signed with Union Exchange Company in Qatar for draft drawing arrangements.

An agreement with Al Ahlia Exchange company in the UAE has also been formalised and an MoU will be announced shortly, he said. Both these agreements have received clearances from the RBI.

The bank is also talking to a few other companies in the Gulf states with the aim of providing wider access to its NRI clientele in the region. "These are yet to be finalised and then we have to go for clearances," he said. Having more such arrangements will meet customer requirements and preferences for particular financial institutions, he said.

The UAE Exchange Centre is the main correspondent for the South Indian Bank in the UAE, Oman and Kuwait, Mr Sethumadhavan said.

Currently, NRI deposits account for 39 per cent (around Rs 2,300 crore) of the total deposit base of the bank. The bank has NRI clients from the US and Europe, but the Gulf accounts form its biggest NRI customer base. The bank has the highest market share of NRI clients in Kerala. NRI remittances have been improving over the past few years, he added.

The bank, which registered a growth of 25 per cent last year, is targeting around 27 per cent this year, he said. Mr Sethumadhavan, who toured Bahrain, Kuwait, Oman and Qatar before visiting the UAE, said that the tour helped interaction with the bank's customers in order to facilitate more and value added services. He held meetings with exchange centre officials and customers in Abu Dhabi.

Mr Sudhir Shetty, General Manager, UAE Exchange Centre, said that plans are on to introduce speed remittance facility arrangements with the South Indian Bank. Arrangements with the bank for direct credit into client accounts is being worked on at present and could go into operation within a month, he said. The bank has a wide network in Kerala and the quality of service for NRIs was good, he added.

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