French multinational bank Societe Generale (SG) which opened its third branch in India at Sanand in Gujarat on Tuesday said it plans to enter the markets in Bangalore, Chennai, Hyderabad and Pune as well by opening branches there in the next three years.
So far, the bank had branches in Mumbai (since 1985) and New Delhi (1993), Marc-Emmanuel Vives, Chief Executive and Group Chief Country Officer, Societe Generale India, said here.
The bank also expects to get Basel III compliance in June this year, he told presspersons.
The Sanand branch would focus on corporate banking, investment in equity, information systems, new products and people.
He said SG chose Sanand for its entry into Gujarat as the State is predominantly industrial and financing industrial growth is one of the bank’s key vocations. In particular, the industry mix in Gujarat corresponds to SG Group’s priorities such as natural resources (including oil and gas, in which it is a world leader) and SG India’s emphasis on the pharmaceutical, automobile, fertilisers and chemicals sectors, for which Gujarat is well-known, he said.
Vives said the bank’s lending in India so far has been nearly 300 million euros. Its CAGR was 50 per cent in 2012 and it hopes to catch up with SG’s business in China in three years.
Replying to a question, he said SG’s rate of interest was competitive compared to Indian banks’ higher rates. As compared to China, the entry into India is relatively easier. In China, foreign banks have to follow strict norms for entry and business, compared with Eastern Europe and Russia where foreign banks can enter by simply acquiring local banks.
About the Indian economy, Vives observed that it could grow by 7 to 9 per cent provided the necessary reforms take place in time. Also, he expected the RBI to further cut rates.