Dubai: Gulf NRIs core focus

Sunday, 05 September 2010 15:44

Source: Khaleej Times
By: Abdul Basit

The non-resident Indian (NRI) customers are one of the focus areas for the Union Bank of India and there are vast opportunities to serve this segment through a mix of products and services, the top executive of the bank said.

 The bank, which has several NRI-focused branches in India, opened a representative office in Abu Dhabi in December 2007 with the objective of building a strong relationship with the Indian expatriates settled or working in the Capital.

“We opened almost 76,000 new NRI accounts in India after establishing our Abu Dhabi office,” the bank’s Chairman and Managing Director M V Nair told Khaleej Times in an interview during his visit to Dubai last week.

The UAE office also helps boost the share of remittances from NRIs based in the Gulf countries to India, Nair said.

“When we started we had a small share of NRI business, but now the bank accounts for nearly five per cent of the total remittances going through banking channels from GCC countries to India,” he said. “Now our aim is to take it to up to 10 per cent by 2012,” he added.

“Truly, the experience so far has been quite satisfying and to deepen this, the bank has posted 13 relationship managers in the GCC (Gulf Co-operation Council) countries which enables us listen to the needs of the customers and address those more effectively,” Nair said, adding that “their (relationship mangers) primary aim is interaction with customers, helping them remit funds and giving them the required information. He said the entire approach with which the bank has targeted NRI customers has become a differentiator today.

“For providing a quick and prompt service, the account opening process is centralised at our NRI branch in Mumbai. These accounts are then transferred to the branches where the customers intent to open the account.

Remittances

A Speedy and cheaper remittance facility is an important need of NRI customers who frequently send money to their relatives back home in India. The bank has made this a hassle-free process.

Union Bank currently has remittance arrangement with 20 exchange houses in the GCC countries in the form of Rupee Drawing Arrangement and Express Remittance. The Express Remittance product ensures transfer of funds on same day (within 24 hours) to the accounts in India.

Attractive loans

There are NRIs who want to come back and start their own enterprise in India as the country offers high returns. To support them, Nair said, the bank offers loans for setting up such ventures at very attractive rates of interest. There are 250 focused business banking branches besides a pan-India network of branches that also offer loans to SMEs.

“Union Bank is a leading bank in extending loans to such enterprises. We welcome NRIs interested in setting up businesses in India as we are prepared to meet their entire banking needs.”

Home loans

Many NRIs are interested in purchasing housing properties in India. For them, the bank has launched an exclusive scheme called ‘Union Paradise’. Under this scheme, NRIs working in Indian embassies and consulates, air lines, shipping companies, MNCs etc. are eligible for availing loans from the bank. Their close family members can also join as co-applicants.

For purchase or construction of a house, a flat or a plot (from government agency), the bank gives loans at competitive interest rates for an amount of up to Rs3 crore for ‘A’ class cities and up to Rs1 crore for other cities. A loan up to Rs10 lakh may be given for repairs. Repayment of up to 25 years with provision for an initial moratorium of 18 months and 10 years in case of repairs is allowed. There is no pre-payment penalty, if the loan is adjusted from own funds.

Education loans

Imparting quality education to the children is a felt need among NRIs. The fees charged by various technical and professional courses are very high.

“Keeping this in mind, the bank offers educational loans to students at attractive rates of interest and there is a concession of half-a-per cent in interest rate for women,” Nair said. The bank also organises campus loan camps during admission time and also extends customised offers for admission to top institutes. Union Loan Points, the specialised branches for this purpose, will complete the entire process of extending a loan with minimum turnaround time, he said.

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