The Hindu Business Line : Andhra Bank ties up with Citibank for funds transfer

The product, which has not been named yet, is undergoing a technology check and will soon be launched, Mr R.S. Reddy, Chairman and Managing Director, Andhra Bank, said.

“This is a white-labeled product which will carry only the name of Andhra Bank on the portal while Citibank would provide vital support including technology,” he said.

The main objective of the remittance product is to attract the large number of non-resident Indians in the US.

It would coincide with the launch of Andhra Bank’s representative office in New Jersey. “We have already soft-launched our operations in New Jersey and the initial response is very encouraging,” Mr Reddy said.

A foothold in New Jersey is strategic for the 84-year-old bank as it has a large number of NRIs from Andhra Pradesh. At the initial stage, the main function of the representative office will be liaison with the large numbers of (NRIs) living there.

It would also consider upgradation of the representative office into a branch in a short time and expansion to other parts of the US.

“The focus of our New Jersey office is not just on remittances, but also on enabling the NRIs to start own ventures back in India by providing liaison between them and those in India,” he said.

Focus on NRIs

The business strategy of the Hyderabad-based bank for the US will be fund transfer, deposit mobilisation through liaison, with a strong focus on NRI businessmen.

Due to current economic turmoil in the US, some wealthy NRIs are keen to come back to India to start ventures.

“In fact, we have created a data bank on such people, mapping their requirements and expectations. We will facilitate execution of their plans by identifying suitable partners from among our customers,” he added.

The bank would take up an aggressive promotional campaign on the remittance product in the US in conformity with the regulatory framework in the US, he added.

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