SBM Group of Mauritius has opened its first wholly owned subsidiary in India. Pravind Kumar Jugnauth, the prime minister of Mauritius, inaugurated SBM Bank (India) Limited in Mumbai on Thursday.
SBM Group, the second largest listed banking institution in Mauritius, said SBM Bank (India) Limited will operate as a full-fledged universal bank and that it is the first foreign bank in India to obtain a banking licence from the Reserve Bank of India (RBI) to operate as a wholly owned subsidiary.
This is a historic event, which lays the foundation to set up a robust and sustainable universal banking franchise in the long run
SBM Bank (India) will extend its network by end of March 2020 with four new branches focusing on the mid-market segment comprising mid-corporate and higher end SMEs, as well as building its retail banking footprint.
The Bank is targeting the creation of a healthy business and balance sheet and believes that quality assets of Rs 5,000 crore can be achieved over the next 2 years, the group said in a statement. Established in 1994 in India, the Bank currently operates four branches in Mumbai, Chennai, Hyderabad and Ramachandrapuram.
The Bank will provide support to Indian companies investing into Africa across their trade finance needs. SBM's strong presence in Kenya and Mauritius enables facilitation of trade across the India-Africa trade corridor. In addition to its retail, corporate and trade finance capabilities, SBM offers a comprehensive range of services from capital markets to trading and stockbroking, asset management and custody services.
Indo-Africa trade and investment
"I am very excited and hopeful of this venture. This change in our Indian strategy to convert our operations into a Wholly Owned Subsidiary has as its main objective building greater proximity with our Indian clients. This banking licence to operate as a full-fledged universal bank complements our internationalisation strategy. Now with a bigger presence in Kenya through the acquisition of two local banks, SBM is able to accompany and facilitate trade and investment from India into Africa," SBM group chairman said.
"This is a historic event, which lays the foundation to set up a robust and sustainable universal banking franchise in the long run. Our intent is to create a respected and admired financial institution which requires us to build a franchise which is nimble and agile, and at the same time a trusted service provider," added Sidharth Rath, MD & CEO, SBM Bank (India) Ltd.