BBK unveils big India expansion plans
Manama, March 13, 2014
By Avinash Saxena
India has become an important market for BBK and it plans to have a five-branch operation in the country, the bank's chairman has said.
Speaking to the Gulf Daily News, our sister publication, on the sidelines of the bank's Annual General Meeting (AGM) at the Gulf Hotel yesterday, Murad Ali Murad said BBK had obtained a licence from the Reserve Bank of India for its fourth branch, to be opened in New Delhi later this year.
"We plan to open one more branches after which we will decide on a corporate structure in terms of a special purpose vehicle to manage our India presence," he said.
BBK chief executive Abdulkarim Bucheery said the New Delhi branch positioned BBK in close proximity to a natural customer base in the form of a number of Middle Eastern embassies and corporations operating in India's capital.
"We expect it to be highly successful in what is a very promising market," stated Bucheery.
The chief executive said the bank's Indian branches performed well, managing to offset a currency risk generated by a devaluation of the rupee and returning good growth last year.
In line with strategic objectives, BBK extended its reach into India last year, opening its third branch in the country in Aluva, in the southern state of Kerala.
The bank's other branches are in India's financial capital Mumbai, and Hyderabad, the capital of the state of Andhra Pradesh.
BBK achieved a record net profit of BD45.1 million ($119 million) last year, six per cent higher than BD42.4 million in 2012, with a return on average equity of 14.5 per cent and total assets at year end of BD3.2 billion.
Total operating income for the year recorded growth of 3.5 per cent to BD112.4 million reflecting solid and diversified income streams.
Net interest income reached BD68.9 million, registering a 4.7 per cent increase over last year as a reflection of robust growth in the bank's core business activities.
Other income components also reported marginal growth of 1.5 per cent to BD43.5 million at the end of last year.
The AGM approved cash dividend amounting to BD9,248,954, equivalent to 10 per cent of paid-up capital.
Bonus share issue of 10 per cent (one bonus share for every 10 shares) has also been approved.-TradeArabia News Service