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Kotak Mahindra Bank to set up OBU in 4-5 years
New Delhi, Apr 13: Kotak Mahindra Bank has expressed keen interest in setting up an Overseas Banking Unit (OBU) in the next 4-5 years with the banking regulators coming out with detailed guidelines in this regard.
New Delhi, Apr 13: Kotak Mahindra Bank has expressed keen interest in setting up an Overseas Banking Unit (OBU) in the next 4-5 years with the banking regulators coming out with detailed guidelines in this regard.
"We are certainly open to such a plan. In the next 4-5 years we are hopeful of establishing an OBU," said Uday Kotak, Executive Vice President and Managing Director, Kotak Mahindra.
Seeing yet another opportunity for organic growth, the move comes in the light that OBUs can raise foreign currency funds from international markets at global interest rates.
Reserve Bank of India had recently issued guidelines for banks, either in private or public sector, to set up OBUs with a minimum capital of 10 million dollars.
Banks, including Oriental Bank of Commerce and foreign ones have expressed interest to establish OBU in the Special Economic Zones due to the fact that India was eyeing 80 billion dollar worth exports or one per cent of the share in the global trade by 2007.
Bureau Report
Seeing yet another opportunity for organic growth, the move comes in the light that OBUs can raise foreign currency funds from international markets at global interest rates.
Reserve Bank of India had recently issued guidelines for banks, either in private or public sector, to set up OBUs with a minimum capital of 10 million dollars.
Banks, including Oriental Bank of Commerce and foreign ones have expressed interest to establish OBU in the Special Economic Zones due to the fact that India was eyeing 80 billion dollar worth exports or one per cent of the share in the global trade by 2007.
Bureau Report