Allahabad Bank plans to expand overseas operations

source:BL:Shobha Roy:Kolkata, Sept. 17,2010

Enthused by the performance of its branch in Hong Kong, Allahabad Bank plans to expand its overseas operations in a big way.

The bank plans to launch a second branch in Hong Kong and also establish its presence in Shanghai and Dhaka by the end of this financial year. At Shanghai, there will be a full-fledged branch and at Dhaka a representative office.

“Our Hong Kong branch is doing well. The business stands at about Rs 1,700-1,800 crore and last year we earned a profit of about Rs 12 crore. So we are very bullish about the overseas market. We plan to open one branch in Kowloon, Hong Kong, and another one in Shanghai.

We are planning to set up a representative office in Dhaka which will later be upgraded into a full fledged branch,” Mr J.P. Dua, CMD of Allahabad Bank, told Business Line.

The bank has applied to the Reserve Bank of India for approval. The overseas expansion plan would entail a total investment of about $40 million, he added.

“We are hopeful of getting the RBI approval soon, we will then apply seeking the permission of individual monetary authorities in these countries,” he said.

Allahabad Bank also has a representative office in Shenzhen, China. The bank would aim to take the share of overseas business to about five-to-seven per cent of the bank's total business in the next three years, he said.

According to RBI data available, eleven public sector banks and three private banks in the country together account for about 138 overseas branches in various countries as on March 31, 2009.

There are about 15 branches of various Indian banks in Hong Kong, four in China (one each of State Bank of India (SBI), Bank of India, Bank of Baroda and Canara Bank), four in Bangladesh (all SBI's branches), the RBI data say.