SBI cashes in on $15 billion trade between UAE and India

State Bank of India (SBI) is a relatively newcomer to the UAE, having set up its office in Dubai International Financial Centre (DIFC) only last year. Although it has received a Category 1 licence from the Dubai Financial Services Authority (DFSA) earlier this year, its market for asset creation remains limited because it is not allowed to take deposits from the UAE.

Due to the dearth of deposits from domestic markets, the bank is forced to source 90 per cent of its financing from the international markets. But despite operating in a restrictive environment, India's largest bank is still expecting a double-digit growth year on year and is currently planning its expansion strategies in the Gulf.

"SBI definitely has an advantage in doing this because there is a lot of trade happening between the UAE and India, could be in the range of $15 billion (Dh55bn)," AJ Vidyasagar, Chief Executive Officer of State Bank of India (SBI) at DIFC told Emirates Business. "For this financial year, we have achieved our 12-month loan and deposit targets beginning in the first month itself."