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KHALEEJ TIMES, Wednesday, Sep 11, 2019 | Muharram 12, 1441

ADCB sells Indian portfolio to focus on UAE market

Emirates: Abu Dhabi Commercial Bank (ADCB) has decided to exit the Indian market by selling its portfolio in the South Asian country in order to focus on the UAE market.

The lender said in a statement to the Abu Dhabi Securities Exchange that it would sell its Indian banking portfolio to DCB Bank, subject to regulatory approvals. Its portfolio in India comprises of Dh355 million in assets and Dh601 million in liabilities and the sale will be made at par.

"The decision, which will have no impact on the bank's profitability, is driven by ADCB Group's strategy to focus on its home market," said the statement.

ADCB, Union National Bank, and Al Hilal Bank completed a merger in May to create the ADCB Group with combined assets of Dh423 billion. It is the third-largest financial institution and one of the largest retail lenders in the UAE, accounting for a 21 per cent market share of retail loans as at December 31, 2018. Its first-half net profit fell 15 per cent to Dh2.782 billion.

Kamco Research said that the UAE continues to boast the biggest share of total listed bank assets in the GCC recorded at $710 billion or 31.8 per cent of the total GCC banking assets. UAE banks also recorded the biggest quarter-on-quarter asset growth of 2.9 per cent in the GCC. The asset growth in UAE was also aided by the merger of privately held Al Hilal Bank with ADCB and UNB bringing in its assets in the listed banks space.

Headquartered in Mumbai, India's DCB Bank operates 334 branches across 19 states and three union territories.

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