CSB Bank plans to open first rep office in Dubai

Fairfax-backed CSB Bank is for the first time planning to expand overseas. The Kerala-based bank has applied for a representative office in Dubai to cater to non-residents Indians and grab a higher share of the NRI deposit pie amid intense competition between banks for deposits mobilisation.

The Reserve Bank of India has approved the plan while CSB is awaiting an approval from the Dubai regulator, managing director and chief executive officer Pralay Mondal told ET.

"If we get that we will be able to service our customers better," he said.

"We had a conversation with the Dubai regulator, they are happy with our representation," he said.

The representative office would help CSB in its retail deposit mobilisation in the long run. CSB relies largely on bulk deposits to finance advances growth with the share of bulk deposits rising to 41% at the end of June from 35% a year back.

"We took a lot of these bulk deposits towards the end of March quarter anticipating liquidity tightness. This was to fund our assets growth which was 31% year-on-year. This has contributed to a 5-6 basis point rise in cost of funds," Mondal said.