IDBI Establishes Dubai Subsidiary

by Lorys Charalambous, Tax-News.com, Cyprus

07 June 2010

One of India's leading banks, IDBI Bank Ltd, has received a licence from the Dubai Financial Services Authority to provide a full range of corporate banking services including financial advisory services and syndication of credit from the Dubai International Financial Centre (DIFC).

The bank’s first overseas branch, IDBI Bank’s DIFC office will meet the corporate financing needs not only of its Indian clientele but also of clients in the Middle East.

IDBI Bank is India’s leading provider of project and infrastructure financing. It is the second largest syndicator of loans in India and 4th largest in Asia-Pacific. IDBI Bank aims to foster greater trade and cross-border capital flows between India and the Middle East through its DIFC branch. With expertise in financing mega projects, IDBI Bank also seeks to support and facilitate industrial development in the region over a period of time.

Ahmed Humaid Al Tayer, Governor of the Dubai International Financial Centre, said: “By strengthening financial and capital market linkages, India and the UAE have the opportunity to add a vital new dimension to their already strong economic relationship. The setting up of the offices of leading Indian financial institutions like IDBI in the DIFC prepares the ground for deeper ties between the financial services sectors of both countries. As a global financial hub that is rising in prominence, DIFC provides a strategic base for Indian financial institutions to tap new promising markets in the region.”

India's Minister of State for Finance commented: “In India, IDBI Bank has been a forerunner in the area of industrial financing and has therefore played a pivotal role in financing, developing and nurturing the industrial and financial architecture in India. It is a testimony to the global importance of Dubai that IDBI Bank has now opened its first overseas branch at the Dubai International Financial Centre. Apart from the fact that Dubai is a significant financial and trade hub, the DIFC provides the right platform to IDBI Bank to commence its overseas banking endeavors. The DIFC provides for modern international level infrastructure, operational support, world class regulatory environment and business continuity facilities.”

Bharat Pal Singh, Deputy Managing Director, IDBI Bank said: “Our decision to establish an office in the DIFC reflects our strong belief in the vast growth potential of GCC region. The business segment of the United Arab Emirates has a unique international fabric with Indian businessmen constituting an integral part of that fabric. Our branch at the DIFC would seek to integrate the business interests of the Indian and UAE business communities.

IDBI Bank’s operations during the fiscal year ended March 31, 2010, resulted in an operating profit of INR27.3bn (USD607.4m) and net profit of INR10.3bn (USD229.6m). IDBI Bank Ltd is majority (52.7%) owned by the government of India.

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