BBK sets up $1.8m JV to serve NRIs
Manama, August 7, 2011
BBK has set up a joint venture with have a capital of KD500,000 ($1.8 million) in Kuwait to target the country's 600,000 non-resident Indians (NRIs) who want to invest back home.
BBK which has 40 per cent stake in the venture in which it is joined by 30 per cent partners Geojit BNP Paribas Financial Services (India) and JZ Associates (Kuwait).
The new entity, BBK Geojit Securities KSC, will be headquartered in Kuwait City and will initially start operations with two offices. The company will meet the needs of the burgeoning NRI population in accessing the Indian capital markets.
As one of India's leading financial services provider, Geojit BNP Paribas, with its experience and technical capabilities along with the established presence of BBK and the reputation of JZ Associates, offers a unique opportunity to the NRI population to participate in the Indian markets.
BBK Geojit Securities will offer services including brokerage services, dematerialisation consultancy services and mutual funds of Indian stock markets.
The move by Geojit BNP Paribas is in line with its overall strategy of ramping up its presence in the booming Middle East region. Kuwait, with more than 600,000 NRI population, many of whom are high net worth individuals, is expected to be a lucrative market for the new venture and plans are afoot to increase its presence to six offices.
"BBK has completed 25 years of banking in India predominantly serving the NRIs from the GCC countries," said BBK chief executive Abdulkarim Bucheery.
"NRI services desk of the bank in Bahrain has been offering services relating to Indian stock markets to expats from the region. Encouraged by the good response and to further enhance the level of these activities, BBK has taken initiative to forge a partnership with India's leading stock market services company, Geojit BNP Paribas, along with JZ Associates, a highly reputed financial consulting firm from Kuwait."
He also stated that expats from Kuwait would benefit from this initiative.
"Geojit BNP Paribas has been expanding its footprint in GCC countries over the last decade," said Geojit managing director C J George.
"This joint venture in Kuwait with BBK is the latest step in our efforts to provide savings and investment services relating to Indian stock markets to NRIs in Kuwait who presently do not enjoy any such facility."
"BBK NRI Services in Kuwait has a long presence in Kuwait offering a wide range of banking products to expats," said JZ Associates chairman Jassem Hassan Zainal.
"This new initiative of incorporating an exclusive company to offer broking services pertaining to Indian stock market to expats would be a welcome change for the large expat population of the region." – TradeArabia News Service