INTERFAX. Sberbank of Russia is looking to open a branch in India by the end of 2008. «We obtained approval from the supervisory council that enables us to form all required documents to submit an application to the Reserve Bank of India seeking permission to open a branch in the country» — Sberbank CEO and board chairman German Gref said at a press conference Monday.
According to him, if everything goes as planned, the lending institution’s branch in India will be registered by the end of 2008. «We need to prepare necessary documents to open a branch, a head office and find a potential director of the branch, and later the Reserve Bank of India will take a relevant decision» — Gref said noting that usually it takes one to two years, but given Sberbank’s approach the authorization could be easily obtained by the end of the year.
According to the lending institution’s chief executive, a contribution to the branch’s charter capital will be $25 mln. «We expect all the branch’s expenses not to top $2 mln a year» — Gref added. According to his forecasts, the branch will begin to generate profits starting the second or third year of operations.
