UAE's second largest lender opens India unit

Emirates NBD, the UAE's second-largest lender, has become the latest Gulf-based bank to open a branch in India lured by a growing Indian economy, rising trade between the region and with an aim to diversify outside their home markets.

Emirates NBD with $124 billion is assets, is the fourth large lender from the region to open a branch in less than two years, joining the likes of Qatar National Bank, National Bank of Abu Dhabi and Doha Bank.

Shayne Nelson, group CEO at Emirates NBD said banks from the Gulf are just following their clients into India given the huge market for trade between the regions and armed with capital which is scare for western banks.

"History between the UAE and India is deep. It is India's third largest trading partner with $38 billion. The size of the population and economic growth here make it an attractive market for us. Also, European banks are shrinking, generating returns below their cost of capital. Gulf banks do not have the same issue. My bank's capital adequacy is 21 per cent. We are in fact looking for more branches in India," Nelson said.

Emirates NBD also has three branches in Saudi Arabia which is also a large trading partner with India with $24 billion in bilateral trade.Nelson said he expects to tap that market as well because there are no Indian banks in that country.

Emirates NBD has so far invested $100 million in its Indian branch as capital.