India’s infrastructure boom offers NRIs exciting business prospects
India’s massive infrastructure development programme offers non-resident investors and overseas companies exciting opportunities to benefit from a phenomenal business boom.
“Look at those mega projects that will be coming up in the next 10 to 15 years. All those developmental projects require a large supply chain and vendor ecosystem, where small and big NRI investors and overseas businesses can actively participate,” Shyam Srinivasan, managing director and & CEO of Federal Bank, said.
“Entrepreneurial landscape in India is fast changing. I think a lot of NRIs in the Gulf, and even those who are settled in North American countries, will be able to seize such tremendous business opportunities to be a part of India’s transformative growth phase,” said Srinivasan, who was in Dubai to mark the 15th anniversary of his bank’s operation in the GCC.
The bank, one of the leading private banks of India, opened its representative office in Abu Dhabi in 2008, and set up a base in Dubai in 2016 to serve NRI customers in the UAE.
Speaking to at the bank’s Dubai office, Srinivasan said over the past 15 years, Federal Bank, which has expanded its NRI client base to more than 1.6 million, has achieved numerous milestones.
He said the bank’s non-resident franchise has historically been one of its main lines of business. It has been on a tremendous growth path, surging from Rs73.5 billion in financial year 2010 to Rs730.41 billion in FY22, registering a CAGR of 21.09 per cent. “We have expanded our NRI client base to more than 1.6 million, with 116,160 new customers added during FY22. In FY22, we handled more than 21 per cent of the total personal inward remittances to India, and we currently serve close to one million customers in the GCC.”
The lender, which has 120 remittance arrangements with banks and exchange houses across the globe, has been continuously improving its non-resident market share from around 3.31 per cent in 2014 to around 6.92 per cent in March 2022. Apart from all countries in the GCC, the bank has rupee-drawing arrangement tie-ups in the USA, Canada, the UK, Singapore, Malaysia, Hong Kong, Japan, and New Zealand. A few more tie-ups from other geographies are in the pipeline, Srinivasan said.
“We are proud of our achievements and grateful for the support we have received from our partners, employees and customers. We will continue to strive for excellence and are committed to provide the best of services to our customers across the globe,” he said.
Srinivasan, who has been helming the bank for an unprecedented 13 years, said the lender has brought alive its service proposition ‘Digital at the Fore and Human at the core’ by launching a mint fresh brand campaign that embodies the phrase in spirit. The campaign is expected to go live in India from 12th February.
He said the all-round strong operating performance of the bank helped it deliver highest ever quarterly profits in the last quarter. The bank has crossed Rs3.7 trillion in total business, and has been achieving record profits for several quarters. Third quarter of 2022-23 has been spectacular with a profit of Rs8.04 billion.
“All-round strong operating performance helped deliver highest ever quarterly profits in the last quarter,” he said.
In addition to the traditional products, the bank has ventured into credit cards, personal loans, vehicle loans, commercial vehicle loans and microfinance businesses.
“Our commitment to ESG standards earned an exclusive green equity investment from the International Finance Corporation– World Bank group. We are committed to continuing our legacy of excellence and to serving the UAE for many years to come,” he said.