HDFC Bank, one of India's premier banks, on Wednesday opened its first overseas full-fledged commercial branch in Bahrain.

HDFC Bank has been granted a full commercial branch (FCB) licence by the Central Bank of Bahrain (CBB), said a report in our sister publication, the Gulf Daily News.

The new Bahrain branch with a strong 25-member staff will offer cash management and trade finance solutions for corporate clients and wealth management services for non-resident Indians.

CBB Governor Rasheed Al Maraj, who opened the branch on the 49th floor of the Bahrain Financial Harbour, said the decision by one of India's leading banks to open its first overseas branch in Bahrain is significant at this time.

'This is a testimony to the resilience of our economy,' he told the GDN.

'Despite the global financial crisis, our situation in Bahrain is solid.

'The HDFC presence in Bahrain will further consolidate our economic relations with India.

'Already there are a few Indian banks in Bahrain, and one more big Indian financial institution will establish its presence in Bahrain very shortly.'

HDFC Bank managing director Aditya Puri cited four reasons for choosing Bahrain - its excellent location; clean, open and transparent regulations; cost-effectiveness and developing relations between India and Bahrain.

'Bahrain has always been the financial gateway and the banking hub to the Gulf with a firm regulatory framework, and an overall dynamic financial sector,' he said.

'With increased bilateral business partnerships and investments between GCC nations and India, it was logical for HDFC Bank to use Bahrain as its first stepping stone to increase its direct international presence and to tap the growth potential in the region.'

HDFC Bank will now partner with Bahrain's 300,000- strong Indian community, which has an impressive and long-standing reputation for business and trade across the region and around the world, said Puri.

'Our Bahrain office will be a hub for our international operations, and it will meet the international requirements of global Indians,' he said.

Commenting on the global financial crisis, Puri said it has bypassed India.

'There is no crisis of credit or liquidity in India,' he added.

'The capital adequacy of Indian banks is not less than 10 per cent. For HDFC, this is 12 per cent.

'However, because of the global slowdown, our GDP has dropped from 8.5 per cent to 7.5 per cent this year. It may drop to 7 per cent next year, but still India remains one of the fastest growing economies in the world.'

Euro Money has recognised HDFC as one of the best private sector banks in India, said Puri.

Promoted in 1995 by Housing Development Finance Corporation (HDFC), India's leading housing finance company, HDFC Bank provides a wide range of financial products and services to its over 11 million customers across hundreds of Indian cities.

It uses multiple distribution channels including a pan-India network of branches, ATMs, phone banking, net banking and mobile banking.

Within a relatively short span of time, the bank has emerged as a leading player in retail banking, wholesale banking, and treasury operations, its three principal business segments.

The bank's competitive strength lies in the use of technology and the ability to deliver world-class service with rapid response time, said Puri.

'Over the last 13 years, the bank has successfully gained market share in its target customer franchises while maintaining healthy profitability and asset quality,' he revealed.

'As on September 30, 2008, the bank had a network of 1412 branches and 2890 ATMs in 528 cities across India.' - TradeArabia News Service