HNB keen on India, other markets

Having made inroads to India, Hatton National Bank (HNB) is gearing to enter another market possibly this year, according to a top HNB official.

“HNB struck a Memorandum of Understanding with City Union Bank of India (CUB) on January 11 with the intention of setting up a Joint Venture Investment Banking operation in India. Now we have also set in motion the process to look at one other such market possibly within this year,” Rajendra Theagarajah, Managing Director HNB told The Sunday Times FT.

He added that the second market will also be in the region, adding that the proposed JV Investment Bank will be subject to approval by the Securities and Exchange Board of India [SEBI] and the Reserve Bank of India (RBI).

“We are requesting SEBI and RBI approvals for a category one merchant banking license and the entity will be established as a company,” he said, noting that HNB is moving to complete the business case and get endorsement from the Indian authorities within the first quarter of this year.

He said CUB is well established in Tamil Nadu, Kerala, Andra Pradesh and Karnataka and that HNB is starting with an established client base. “Our Indian venture will have two to three stages of evolution. In the first phase it will be a lean operation which will be a cost conscious exercise,” Theagarajah said.