SBI (MAURITIUS) : A Local Bank Catering To The Banking Needs Of Domestic Retail Customers As Well As Growth In Global Business Segment

THE Comprehensive Economic Cooperation and Partnership Agreement (CECPA) between India and Mauritius asserts the diplomatic and business ties between India and Mauritius, says Somnath Adhya, MD & CEO of SBI (Mauritius) Ltd. The bilateral agreement provides not only preferential access to each other’s products and their domestic market, expanding the proverbial pie of trade, but also roomfor collaboration in a variety of sectors. “Theagreement also opens up avenues for professionals from both countries to collaborate and provide their expertise in African markets. Mauritius, with its established financial and business servicessectors, does attract professionals looking to contribute to various sectors in Africa. A greater benefit is in the education and professional studies areas, where mutual recognition of qualifications may result in its longevity and exceeds that of trade which have a relatively shorter span,”highlights Somnath Adhya.

During the official ceremony marking the celebration of 75 years of bilateral relations between India and Mauritius, it was indeed highlighted that a window of opportunities exist in trade in services for Indian institutions, investors, operators, and professionals through 11 broad Mauritian economic sectors. Many of these business prospects are known and have been explored to varying extents. However, points out the MD & CEO of SBI (Mauritius), there is still a huge potential for further exploration and growth in these sectors.

The best known and harnessed sector, along with the tourism sector, by Indian professionals, investors, entrepreneurs and visitors remains however the Mauritian financial services sector. Mauritius has historically been considered as a hub, particularly due to its favourable tax treaties and regulations. “Mauritius is a gateway for investments into India and other regions. This sector continues to evolve as both countries adapt to changing international tax regulations and seek to enhance their financial services offerings.”

With its position as a gateway to Africa, status of being as one of the few investment grade economies in the African region, together “its stable political, economic, judicial environment and favourable regulation for development of Mauritius as an International Financial Centre” makes of Mauritius an obvious choice for any financial organisation to set up its office in. Besides this, Mauritius has a vast Indian Diaspora having cultural, ancestral and economic linkages with India. “Over the years, Mauritius has developed a robust ecosystem which provides multiple benefits to its Global Business Segment. These benefits have enabled for establishment of various fund houses and Investment Holding companies. Being a part of State Bank of India (SBI) group (one among top 50 global banks), investment companies prefer to utilize our services for remittance and parking of their surplus funds,” states Somnath Adhya.

SBI started its operations in Mauritius in the year 1989 by establishing a subsidiary in collaboration with State Commercial Bank Ltd (SCBL). Further, in 2005, SBI acquired 51% stake in Indian Ocean International Bank Ltd (IOIB), a local bank. Subsequently, IOIB was amalgamated into SBIIML to form SBI (Mauritius) Ltd (SBIML) in 2008. “SBIML has grown synchronously with the economy of Mauritius, which has emerged as a major International FinancialCentre. Over the years, SBI ML has posted a healthy growth to emerge as a steadily growingmid-sized bank amidst the highly competitive banking environment of Mauritius.”

For financial year 2023, SBI (Mauritius) Ltd has posted highest ever profit since its inception. “We hope to continue on this path of excellence by increasing stakeholder’s value and keeping in mind our Mission, Vision and Values. It has always been our endeavour to be perceived as a local bank catering to the banking needs of domestic retail customers as well as growth in Global Business Segment. Our retail portfolio consisting of Car, Housing, Mortgage loan etc. And our domestic corporates/SME segment is also showing a healthy growth over the years. ESG, Climate Change has always been our concern and due priority is provided to these issues. Concerted efforts are being made to shift customers to digital banking through our YONO app, which is becoming popular among customers for their banking needs,” concludes Somnath Adhya.