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Emirates NBD Bank PJSC currently operates in the country in branch mode. The bank has branches in Chennai, Gurugram and Mumbai.
The subsidiary model offers greater operational flexibility for foreign banks operating in India than doing business here through branch banking.
The in-principle approval will allow the bank set up the subsidiary through conversion of its existing branches.
The bank is present in India since November 2017.
The minimum start-up capital requirement for a WOS would be Rs 300 crore and the subsidiary will be required to maintain a capital adequacy ratio of 10 per cent.Its parent bank will be allowed to hold 100 per cent equity in the Indian subsidiary for a minimum prescribed period of operation.RBI said that Emirates NBD Bank PJSC has fulfilled the regulatory mandates for receiving the in-principle approval. The subsidiary model ensures better regulatory oversight.
RBI also says that foreign banks applying for setting up a WOS in India must be subject to adequate prudential supervision in their home country.
Headquartered in Dubai, it is UAE’s second-largest lender.
RBI has also considered the bank’s financial strength as well as the bilateral economic and political relations between India and UAE before granting the approval.
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https://economictimes.indiatimes.com/markets/stocks/news/rbi-okays-emirates-nbd-bank-pjscs-subsidiary-plan-in-india/articleshow/121278775.cms
