PTI

IDBI Bank to open branch in Dubai by December-end

Sun, Nov 8 10:51 AM

New Delhi, Nov 8 (PTI) In a bid to get a toe-hold in the overseas market, state-owned IDBI Bank is planning to open its first foreign branch in Dubai by the end of next month. "We have got regulatory approval and expect to open the branch in December," said IDBI Chairman and Managing Director Yogesh Agarwal.

The branch would come up in Dubai International Financial Centre (DIFC) with the objective to help corporates with their fund requirement in foreign currency. The bank has established USD 1.5 billion Medium Term Note (MTN) Programme for the purpose.

The first tranche of USD 500 million would be raised by the end of December after setting up the branch. The programme will enable the bank to issue various debt instruments in the international capital markets, including Senior Notes, Upper Tier-2 notes and Hybrid Tier-1 notes under a single documentation platform, he said.

This will allow the bank to quickly take advantage of market opportunities where they arise, increasing the banks fund raising efficiency, he added. The bank posted 57 per cent rise in its net profit for the quarter ending September, 2009, helped by growth in both net interest and fee-based income.

Net profit of the bank for the July-September quarter was at Rs 254 crore, up from Rs 162 crore a year ago.

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