Indian Bank expanding in Lanka as profit zooms
20 Mar 2007
Mumbai: Indian Bank, which has gained immensely from the growing India-Sri Lanka trade, is planning to expand operations in Sri Lanka, taking advantage of the over $2 billion of bilateral trade between the two nations. Gross profit rose to Rs17.9 crore from Rs13.7 crore for the nine months ended December last year as the bank marked its 75th anniversary.
"We benefited a lot from an increase in bilateral trade between both countries," chief executive K Raghavan said on the sidelines of a official ceremony marking the 75th anniversary of Indian Bank''s operations in Sri Lanka.
Pending a formal CEPA deal, Sri Lanka has agreed to extend "national treatment" to Indian banks and allow them to employ up to six expatriate staff
With 35 employees manning a single branch, Raghavan said the Bank plans to expand operations next year.
"The Colombo branch is being automated and will be linked to all our Indian branch networks and our offices in Singapore within the next three months," Indian Bank's chairman and managing director K C Chakrabarty said.
Besides Indian Bank, ICICI Bank, Indian Overseas Bank and the State Bank of India have operations in Sri Lanka. UTI Bank has also sought a commercial banking licence to start operations in Lanka.
India and Sri Lanka are exploring avenues to deepen the existing trade pact under a comprehensive economic partnership agreement (CEPA).