India's Oldest Bank Opens First Foreign Branch In Hong Kong

by Phillip Morton, Investors Offshore.com

15 March 2007

Allahabad Bank, India’s oldest joint stock bank has chosen Hong Kong for its first overseas branch.

The leading public sector bank, which is currently 55.23% held by the Indian government, has opened a branch at the Lippo Centre to serve retail and corporate clients. The occasion was attended by the Head of Banking Supervision at the Hong Kong Monetary Authority, T.Y. Chan, and Consul General of India in Hong Kong, B K Gupta.

As part of its China expansion plans, the bank also opened a representative office in Shenzhen, from which it will explore opportunities in the dynamic southern China region.

Chairman and Managing Director of Allahabad Bank, A C Mahajan, stated that: “Having consolidated our business with 2,046 branches across India, as well as long standing relationships with 225 foreign counterparts in all major economies, our Bank decided to expand our presence into key overseas business centres. Hong Kong was a natural first step and we look forward to offering a range of improved and efficient services to cater to the needs of retail and corporate clients in India as well as Hong Kong.”

Commenting on the move, the Director-General of Investment Promotion at Invest Hong Kong, Mike Rowse, announced that: “We’re delighted, but not surprised, that Allahabad Bank chose Hong Kong for its first overseas branch. Almost three quarters of the world’s leading banks already have offices here, so it’s a natural step for a leading Indian bank, such as Allahabad Bank to set up here.”

Rowse added: “Hong Kong’s 45,000-strong Indian community has an impressive and long-standing reputation for business and trade across the region and around the world. Add to this the booming trade links between India and China, I have no doubts Allahabad Bank will find exciting opportunities in Hong Kong. ”

Established on 24 April 1865, Allahabad Bank currently has assets of HK$118.04 billion (US$15.1 billion), and deposits of HK$102.77 billion.

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