Sberbank To Expand India Operations, Invest About $100 Million Over 3 Years, Says CEO

Sberbank, Russia's largest lender, on Thursday said it plans to gradually expand its business in India and would invest about $100 million over the next three years to take advantage of the growing Indian market.

'We have a full banking licence here...we will expand our business in a step-by-step manner over the next three years. We will ramp up B2B business and enter into the B2C segment,' Herman Gref, CEO and Chairman of the Executive Board, Sberbank, told reporters here.

The bank, which established its operations in 2010, has sought 10 branch licences from the RBI to be opened across 10 cities. "We have requested the central bank here to grant 10 branch licences for opening offices," he said.

Currently, it has two branches and an IT unit in Bengaluru to serve as an in-house data processing centre.

The bank will bring an IT system from Moscow (Russia) and make adjustments to the specific regulations of the country, he said.

Besides, he said, it will also seek the right partners to bring new technology in high tech, education and healthcare. In addition, it plans another in-house data processing centre in Hyderabad. The group employs 900 employees in India, which will see growth in the coming years.

Gref is visiting India with Russian President Vladimir Putin, who is here on a two-day official trip beginning Thursday for the 23rd India-Russia Annual Summit at the invitation of Prime Minister Narendra Modi. This is his first visit to India in four years.

Asked about investment over the next three years, he said it would be a few $100 million across various verticals, including a data processing centre and a large office building.

Elaborating on the special instrument being offered to its Russian customers, Gref said that recently the bank has launched a product for its account holders to invest in Nifty 50 stocks.

Besides, he said, it also intends to offer its customers a facility to invest in government securities, which provide a stable return.

Russian retail and institutional customers can invest in government securities, he said, adding that it is also planning a product to finance gold imports from India.

On the rupee-ruble trade, Gref said it has grown exponentially by almost 14 times, and turnaround time has reduced significantly as the system is getting perfect with each passing day.

Sounding optimistic about the Indian economy, Gref said it is expected to grow 6-7 per cent over the next 10 years, and even the country's domestic currency is very stable.

It is the right moment to invest in India as its economy is growing at a much faster rate compared to China, and at the same time, it is sustainable, he added.