The performance of Bank of India (NZ) Limited during the first six months of the current financial year has been excellent with impressive growth seen in almost all areas of its operations, Chairman Rabin Rabindran said.
Speaking at the Fourth Foundation Day of the Bank held at Sudima Auckland Airport on October 10, he said that total deposits of the two branches of the Bank (in Epsom and Papatoetoe) Auckland grew from $18.03 million to $24 million, accounting for a whopping 70% increase on annualised basis.
Advances reached $55.5 million (from $48.9 million), while the Business Mix moved up to $79.85 million (from $66.93 million). The annualised percentage growth was respectively 27% and 38%.
No Loan Loss
“We have to be one of a very small number of banks in the world that have zero Non-Performing Assets and we intend to keep it that way,” Mr Rabindran said.
“Our parent Bank, the Bank of India, has also had a successful year. For the financial year ended March 31, 2014, its global business increased by 14.6%, global deposits by 13.2%, and global advances by 16.3%. These increases are only some of the highlights,” he said.
Mr Rabindran said that as at the end of September 30, 2014, Standard & Poors had lifted the Bank’s Rating from BBB- (Negative) to BBB- (Stable).
The Subsidiary Model
Managing Director Ranjitkumar Amarendra Jha said that while Bank of India has had its presence in several countries across the Continents as branches, the ‘Subsidiary Model’ (mandatory requirement of the Reserve Bank of New Zealand) was new.
“There were intense discussions whether a Banking company with an initial capital of $50 million would succeed. BOINZ was the first overseas venture of Bank of India as a fully owned (100%) subsidiary and therefore there was very little to gain by experience. I am happy that Bank of India took the decision to incorporate BOINZ,” he said.
Special Guests
Among those present at the Ceremony were Indian High Commissioner Ravi Thapar, Members of Parliament Kanwaljit Singh Bakshi (National), Mahesh Bindra (New Zealand First), BOINZ Director Sameer Handa, Branch Managers Ashish Sharma (Epsom) and Shiba Biswal (Papatoetoe) and other invited guests.
Last year, Bank of India received the ‘Best Banker Award’ (at the India SME Excellence Awards) for Exemplary Contribution and the ‘Second Most Trusted Brand in India among Public Sector Undertakings’ (Banking Sector) awarded by the Economic Times.
Governor’s tick
Editor’s note: As reported in our October 15, 2011 issue, the then Reserve Bank of New Zealand Governor Dr Alan Bollard gave a clean chit to the Indian banking system saying that commercial banks in India were well regulated and showed resilience, similar to their New Zealand counterparts.
“The Indian banking system is strong and responsive, complimenting the country’s economic growth. The Reserve Bank of India has established robust systems and procedures that have proved to be effective,” he said, inaugurating Bank of India (NZ) Limited, a wholly owned subsidiary of Bank of India and its first New Zealand branch in Auckland on October 6, 2011.
