Pakistan, India to operate banks across border soon: Mansha!

[Norwegian]

Pakistan, India to operate banks across border soon: Mansha
By Web Desk
Published: July 5, 2015

PHOTO: ARCHIVE.FORTUNE.COM

In a historic move, Pakistan and India’s banks are set to open their branches in each other’s countries soon, according to business giant Mian Mansha.

“Central banks of both the countries have completed the necessary work and are waiting for a green signal from New Delhi,” Mansha told Khaleej Times on the sidelines of an event in Dubai.

“Reserve Bank of India (RBI) has more or less processed our ap-plication, I have also met Indian Finance Minister Arun Jaitley and he is very positive on it,” Mansha added.

To normalise trade relations, Pakistan and India will allow three banks to set up branches in the other country.

In 2012, two Indian banks namely the State Bank of India and Bank of India were allowed to operate in Pakistan. While, state-owned National Bank of Pakistan and privately-owned United Bank Ltd were selected for running full banking operations in India once they obtained licences.

“When our government gave two names, NBP and UBL, to the Indian government, the business community in India asked for MCB Bank instead,” Mansha claimed.

MCB Bank was incorporated in Calcutta in 1947 but the bank’s headquarters is now located in Lahore. “We had more than 65 per cent of our trade flows with India before 1965.”

“We will have three branches in Mumbai, New Delhi and it will be the first foreign bank if it gets permission in Amritsar,” Mansha added.

However, he explained, “I think now it’s a little bit stuck on the political side. Hopefully, we get on track and it will be done soon. Sometimes politics take over economic things. We should have trade relationship that can take the shocks.”

Recently Pakistan and India have been involved in a verbal tirade souring relations between the two countries.

This article originally appeared on Khaleej Times
Pakistan, India to operate banks across border soon: Mansha - The Express Tribune

I hope these banks are not used for terror financing across the border. Anyways, good luck with your new-found love of the money! At least there is "something" that unites ours two countries for a common cause!

@13 komaun @[Bregs] @agamdilawari @airuah @Ajit Kumar @Ammyy @anant_s @Arav_Rana @ASB @Avik274 @Bagha @bhangi bava @bloo @blood @Blue_Eyes @Bombaywalla @Brahmos_2 @cerberus @Chanakya's_Chant @chhota bheem @danish_vij @desert warrior @DRAY @Echo_419 @eowyn @Etilla @farhan_9909 @Force-India @gau8av @genmirajborgza786 @Georgeclark @gslv mk3 @halupridol @haviZsultan @he-man @illusion8 @Ind4Ever @indiatester @IndoUS @Indrani @itachiii @ito @jaiind @JanjaWeed @kadamba-warrior @karan.1970 @khujliwal @Krate M @kurup @levina @lightoftruth @magudi @Major Shaitan Singh @Manindra @Marxist @me_itsme @Mike_Brando @MilSpec @Mukunda Murthi Rao @Nair saab @naveen mishra @noksss @Not Sure @Omega007 @OrionHunter @PARIKRAMA @pumkinduke @pursuit of happiness @r1_vns @rahi2357 @Rain Man @ranjeet @ravi Nair @RayOfLight @Razia Sultana @ROCKING @Rohit Patel @rubyjackass @Ryuzaki @sajan @SamantK @SAMEET @Samudra Manthan @SarthakGanguly @Sidak @Skull and Bones @Sneaker @SpArK @Spectre @sreekumar @Srinivas @SrNair @Star Wars @surya kiran @SwAggeR @Syama Ayas @Tea addict @thesolar65 @utraash @VeeraBahadur @vostok @WAR-rior @Water Car Engineer @wolfpack @wolfschanzze @Yogijaat

 

[thesolar65]

Now each country can fund each others separatists directly!!

 

[Mukunda Murthi Rao]

This is a good initiative. when people from both sides invest in each other, there will be vested interest in keeping peace.
Trade should have been the first priority for both the countries, instead of kashmir, sir kreek and all..

 

[[Bregs]]

Good move but for these banks to have operational success the trade between two countries must increase too

 

[WaLeEdK2]

Now each country can fund each others separatists directly!!

Lol just what I was thinking.

 

[Norwegian]

Good move but for these banks to have operational success the trade between two countries must increase too

Let's get started with the terror financing, and then we can look for more places to "invest" if it turns out to be very profitable.

 

[[Bregs]]

Let's get started with the terror financing, and then we can look for more places to "invest" if it turns out to be very profitable.

lol true , relations are at all time low so not a good time to start

 

[P.K.]

I can foresee RAW and ISI smirking

 

[Al Bhatti]

4 July 2015

Shaikh Nahyan bin Mubarak Al Nahyan, Ishaq Dar and Mian Mohammad Mansha at the inauguration of MCB Bank in Dubai.

Pakistan’s MCB Bank begins Dubai wholesale operations
Lender sees huge growth potential; will also tap Asean market

Pakistan’s MCB Bank has opened its wholesale banking operation in Dubai and its top officials said the market has huge potential for growth.

In addition to catering to the needs of Indians and Pakistanis based in the UAE, the bank is looking to tap the Asean market, which has trade flows of around $80 billion per annum with the Middle East region.

MCB already had a representative office in Dubai since 2008. Last year, the bank got the green signal from the Central Bank of the UAE and State Bank of Pakistan, or SBP, for the establishment of a wholesale unit in the UAE.

The bank opened its wholesale branch in March this year but last Thursday was the official launch during an event in Dubai. It was attended by Shaikh Nahyan bin Mubarak Al Nahyan, UAE Minister of Culture, Youth and Community Development; Ishaq Dar, Pakistan Finance Minister; Riaz Riazuddin, Deputy Governor of the SBP; Mian Mohammad Mansha, MCB group chairman; UAE central bank officials and a large number of dignitaries.

Speaking on the occasion, Dar said that the establishment of an MCB branch in Dubai would provide quality banking services to the large Pakistani community and also facilitate them in sending remittances back home.

He urged other Pakistani banks to establish their branches in the Middle East and other areas with the presence of a large Pakistani community as it would help them send their remittances and avail other banking services.

In his address on the occasion, Shaikh Nahyan welcomed the opening of the leading Pakistani bank branch in Dubai and said it would be a good addition to the extensive and vibrant local and international banking network in the UAE.

Mansha told Khaleej Times that the bank hoped to open more branches in the UAE, subject to approval from the UAE central bank. MCB Bank already has seven branches in Sri Lanka, one in Bahrain and one in Azerbaijan, he said.

He mentioned that the more-than-1,200 branches in Pakistan receive around 12 per cent of the total remittances to the country. Official data shows that workers’ remittances in Pakistan rose to $15 billion during the first nine months of fiscal year 2014-15.

With its first wholesale banking branch in the UAE, MCB has customised business products, which include business accounts as well as finance and trade. The services provided will cater to the booming business community of the UAE, and will contribute towards further expansion and growth amidst this flourishing economy.

MCB’s presence in Dubai will strengthen trade flows between the UAE and Pakistan, while supporting the business community in the two countries engaged in international trade between.

Moreover, this strategic presence in the UAE will help engender trade relations between the UAE business community and countries in Asia especially the Far Eastern corridor, where Maybank of Malaysia has a strong foothold.

Shoaib Mumtaz, country manager of the bank’s branch in the UAE, said that the response has been very good especially from the Indian business community in Dubai after the soft opening early this year. The bank’s branch is located in Karama, which is a predominantly Indian market.

Mumtaz said the bank’s current capitalisation is Dh40 million and he doesn’t expect profit in the first year of operations. “We don’t see coming into the positive this year. Practically, we are going operate only nine months this year. In 2016, we would be showing positive figures as far as our balance sheet is concerned.”

“We are targeting and concentrating more on fee income and structuring self-liquidity transactions,” he said. “We have a couple of interest from liability side and assets as well.”

He said that the bank would soon establish a “Far Eastern Trade Desk” in Dubai with the help of Maybank, which hold 20 per cent shares in MCB.


“We are trying to get their [Maybank] intelligence with deal with their customers,” he said, adding that the bank will be concentrating on countries like Malaysia, Indonesia, Singapore and China. “Maybank has agreed to… give us very good resources that are well-familiarised with all these four markets,” he added. The potential is huge as the trade that goes to these four regions is more than $80 billion, he added.

Muhtashim Ashai, senior vice-president of MCB’s wholesale banking group, also reiterated that the bank can do a lot in the UAE. “The bank is bullish on the prospects of the UAE. Expo 2020 is just one part of it. This kind of policy that UAE has for promoting trade and invest is fairly unique in this region,” Ashai added.

“I think our access to the Chinese corridor and Asean corridor will depend of our strength and relationship with Maybank. They are the biggest bank in Malaysia and they are also excited to be here with us as they don’t have presence here.”

Pakistan’s MCB Bank begins Dubai wholesale operations - Khaleej Times

 

[GURU DUTT]

Now each country can fund each others separatists directly!!

sheher bassa nahi luterre pehle aa gaye

but you are right its not fisable deu to massive corruption and acute law and order situation + almost crumbling taxation system in pakistan we shount waste owr money on such fantesies

 

[Ajit Kumar]

Let's get started with the terror financing, and then we can look for more places to "invest" if it turns out to be very profitable.

Lets invest in ISIS . he he he he

 

[Norwegian]

Lets invest in ISIS . he he he he

Nah, they might just blow up the bank for charging 'haram' interest on the loans

 

[Ajit Kumar]

Nah, they might just blow up the bank for charging 'haram' interest on the loans

Nah. Just like a Hindu Baniya is there in Somalia who invests both in Government forces and Terrorists. Same way

 

[GURU DUTT]

Nah, they might just blow up the bank for charging 'haram' interest on the loans

be carefull bhai jaan i got banned for two weeks just because i made simmilar comment on same topic once on this forum u sir are been warned

 

[Providence]

No need to print the local currency. The terrorists can move lightly across borders. They just need an ATM to draw cash in the target zone