Tarun Ghulati: “Bramer Bank has grown by 39% in 2013”

Bramer Bank has overachieved its profit expectations. The bank’s sustained investments in technology and effort to reduce operating expenses will continue to contribute to its positive growth, says Tarun Ghulati, the Group President and CEO of Bramer Corporation.

BUSINESSMAG.Bramer Bank has been in the news in the past months. Could you tell us a bit more about its performance?

The transformation of Bramer Bank has been most dramatic. The bank has more than lived up to its billing and has overachieved its profit expectations. The business has shown resilience, tenacity backed by a positive mindset, and the scorecard reads well. Indeed, underpinned by its robust strategy to become “the bank of choice for growing businesses and aspiring individuals”, the bank has grown by over 39% compared to an average 10% for the industry as a whole in 2013.

The management structure has been better aligned with business through reorganization to facilitate growth and become increasingly results driven. This has given further impetus to the Domestic, International, Business Banking, Private Banking, Retail Banking and Micro Finance segments.

The bank took the lead in the market to launch the ‘Bramer GO’ savings account without any fees and minimum balance requirement. Our endeavour to be closer to customers has prompted us to extend our geographical footprint – from 6 branches to 20 and from 5 ATMs to 28 over the last few years. On International Banking, Bramer Bank is not sitting still and is actively targeting syndicated deals with Tier 1 international banks.

The bank’s sustained investments in technology and a conscious effort to reduce operating expenses will continue to contribute to its positive growth trajectory – the bank’s cost to income ratio has been brought down by 19% over the past year and we are expecting this indicator to further improve in the coming years.

Bramer Bank’s exceptional performance has not gone unnoticed. The bank recently won three awards namely “Brand Excellence Award” at the Global Brand Excellence Awards, “The Fastest Growing Bank in Mauritius” by the International Finance Magazine and “Best Emerging Bank Mauritius 2014” from Capital Finance International (CFI).

BUSINESSMAG.What strategies has Bramer Bank put in place to sustain this growth?

The bank is targeting medium to large businesses in key sectors of the Mauritian economy. Selective focus on consumer banking in both urban and rural areas remains another key priority, leveraging upon the extensive branch network. Focus on private banking and wealth management for high net worth individuals is expected to boost the bank’s private ban-king segment. Access to micro-finance is not being overlooked and underserved segments are being considered. On International Ban-king, Bramer Bank is establishing presence and relationships in key markets such as India, China, Europe and Africa.

Leading international banks, domestic banks and even some regional banks are all jostling for space, making the banking sector highly competitive. I believe the competition is only going to get tougher and Bramer Bank will continue to build a more robust sales and service culture, to break away from the pack and emerge as a major player. I am delighted to express optimism that the bank’s performance this year will again remain robust, driven by the new strategic initiatives anchoring the growth momentum.

BUSINESSMAG.How about the other entities under Bramer Corporation Limited, the financial services cluster of the British American Investment Group?

The key player under Bramer Corporation is BAI, the original insurance brand which became the leading insurance company within 40 years of existence. In a market of around 1.3 million inhabitants, BAI services over 125,000 active policy holders. This is a clear indicator of trust. It is noteworthy that BAI maintained an average growth rate of 20% over the last 3 years, which were very difficult years worldwide. The company has recently been awarded “Best Life Insurance Company Mauritius 2014” by the International Finance Magazine. BAI has launched operations in Botswana, but that is not the last stop. Our international development team is already eyeing other lucrative territories in sub-Saharan Africa.

Our asset management company, Bramer Asset Management, which was until very recently only distributing third party funds, is now managing three funds: the Bramer Growth Fund, the Bramer Property Fund (the largest property fund in Mauritius) and Aleef. The company is now embarking on a growth strategy to diversify its investor base and expand geographically. Last year, it partnered with Emirates NBD for the distribution of Shariah funds. This year, Bramer Asset Management has launched an ‘Emerging Africa Bond Fund’ to participate in the African investment opportunities and give investors a chance to acquire a share of Africa’s growth potential.

BUSINESSMAG.So what does the future hold out for your financial services businesses?

Exponential growth in banking profits, a truly international asset management footprint and a regional insurance business. The “Bramer” brand is already gaining prominence, and I expect it to become increasingly synonymous with “exceeding customer expectations, both in terms of delivering value and service”.