Dutch Rabobank to open branch in Mumbai after RBI nod
02 Apr 2011
Dutch lender Rabobank NV yesterday said that it had received approval from the Reserve Bank of India to start full-fledged banking operations, and will open its first branch in Mumbai.
''This will help Rabobank to substantially expand its current range of services in the Indian market,'' the Dutch lender said. ''Rabobank's application for this licence is part of the bank's international strategy to expand its activities in major growth markets with a strong food and agriculture base.''
The licence comes nine months after Rabobank sold an 11-per cent stake in Yes Bank Ltd. It still holds 4.82 per cent in the private sector lender. Under Indian banking regulations, a foreign bank holding more than 5 per cent equity in an Indian lender can't apply to open branches in the country.
Rabobank was a promoter in Yes Bank, holding a 20-per cent stake when the private bank got a licence in 2004. This stake was reduced to 15.82 per cent as Yes Bank sold shares to raise capital.
The Rabobank Group also runs Rabo India Finance Ltd, a non-banking financial company in the country that lends to food and agri-businesses and renewable energy companies, besides advising on mergers and acquisitions.
A Rabo India Finance spokesperson said the bank received the RBI approval on Thursday. ''The licence gives us an opportunity to start banking operations, but it is too early to say on what we will do with Rabo India,'' she said.
