Malta bank looks for Indian partner to set up NBFC

NEW DELHI: Malta-based FIM Bank is set to establish a new non-banking financial company (NBFC) in India with an estimated investment of Rs 25 crore, said a person with direct knowledge of the development. The bank is currently scouting for an Indian joint venture (JV) partner for the same, the person added.

FIM Bank will hold 49% stake in the proposed JV, while the remaining equity will be held by the Indian partner. ���The new venture would largely target the small and medium enterprises in the domestic market offering them specialised financial services,��� said the person on condition of anonymity.

This is not the first time that FIM Bank is setting foot in India. It had earlier held 38.5% stake in Mumbai-based Global Trade Finance (GTFL), a provider of financial services in the areas of export and import, which was later acquired by State Bank of India in 2008.

FIM Bank provides trade-related financial services to clients in the emerging markets. Established in 1994, it is a public-listed company on the Malta Stock Exchange.

The bank specialises in international trade finance and auxiliary products, such as ship finance. IFC, the private sector investment arm of the World Bank, is one of the shareholders of FIM bank. Some of its other investors include Kuwaiti Interests for Financial Investment, Global Financial Holdings and Bank of Valletta.