Mauritius-based IndusInd International Holdings (IIHL) said that its subsidiary IndusInd Bank will expand its services in strategic markets, including the Middle East, under a new management team headed by Romesh Sobti as CEO.

IIHL made the announcement at its 15th Annual General Meeting (AGM) held at the Grand Hyatt in Dubai.

It said which operates 148 branches in India, is aiming to capitalise on the significant NRI and Indian-origin populations in the Middle East. IndusInd Bank plans to enter the mideast market either through strategic alliances or by acquiring banks or by applying for fresh banking licenses.

IIHL's AGM was chaired by S P Hinduja, who is also the chairman of the Hinduja Group and was well attended by the affluent Sindhi community from across the world. A P Hinduja, Dr Ram Buxani, Kewalram Sital, Nari Pohani and other dignitaries were present at the AGM.

S P Hinduja, chairman, IIHL, said: "The plans of Romesh Sobti and his team for the Bank are essentially based on two planks, namely: building on its strengths and remedying the weaknesses. The management team is confident that the Bank will overtake its peers in the next three years, as measured by the criteria of Productivity, Profitability, and Efficiency.

"Having overcome its past problems, IndusInd Bank is now poised for rapid growth as a significantly strengthened entity.  Its Capital Adequacy Ratio, a key indicator of stability, stands at a comfortable 11.91 per cent as on March 31, 2008, well above the regulatory minimum in India of 9 per cent.

“In fact, this ratio (more correctly referred to as the Capital to Risk-weighted Assets Ratio or CRAR) has risen further to 13.16 per cent as on June 30, 2008. The Bank also enjoys the highest ratings on its debt instruments from the leading rating agencies in India – Crisil, ICRA, and Fitch. The Bank has consistently remained profitable every single year of its existence, right from its very first year of operations (1994-95).

“The value of shareholders’ investment in IIHL has considerably appreciated, even after providing a reasonable return by way of dividend payment. IIHL has been paying dividend to its shareholders since 1995. The average dividend paid has been 6.33 per cent per annum and the total dividends paid have amounted to $22.68 million, equivalent to $0.73 per share of $1 each. The average dividend paid since 1995 is about 2 per cent higher than the average 6-month LIBOR during the same period.

"As on March 31, 2008, the networth of IIHL is $178.17 million. In order to share the benefit of the growth of the company, it was decided to issue 6 per cent Five Year Bonus Bonds of $1 each to shareholders in the ratio of 1 bond to every 2 shares held with effect from October 1, 2007." - TradeArabia News Service