Taipei Fubon Bank secures FSC approval to open branch in India

Taipei, Feb. 21 (CNA) Taipei Fubon Commercial Bank Co., a Taiwanese bank owned by Fubon Financial Holding Co., has secured approval from the Financial Supervisory Commission (FSC) to open a branch in the Indian city of Mumbai.

The FSC, the top financial regulator in Taiwan, said Wednesday in a statement that Taipei Fubon Bank had taken into account the Indian market's current and long-term growth prospects before deciding to set up a branch in Mumbai, a financial hub in the South Asian country.

The FSC said the planned Mumbai branch is expected to help Taiwanese investors in India and local Indian enterprises access financing opportunities, including international syndicated loans.

The FSC therefore issued the green light to Taipei Fubon Bank to seek approval from financial authorities in India to open a branch in Mumbai. If successful, it would be the fourth Taiwanese bank to set up shop in the South Asian country, the FSC added.

So far, CTBC Bank has two branches in India, one in New Delhi and the other in Sriperumbudur, while Bank of Taiwan, the largest Taiwanese lender, and Mega International Commercial Bank each have a representative office in Mumbai.

India is one of the 18 countries targeted by the Taiwan government’s New Southbound Policy.

The New Southbound Policy aims to enhance trade and exchanges between Taiwan and the 18 countries in Southeast and South Asia, as well as Australia and New Zealand, to reduce Taiwan's dependence on China. It was introduced after President Tsai Ing-wen (蔡英文) took office in 2016.

As of the end of January, Taipei Fubon Bank had overseas branches in Ho Chi Minh City, Hanoi, and Binh Duong of Vietnam, as well as in Hong Kong and Singapore, the FSC said, adding that the bank owns a subsidiary --Fubon Bank -- in China.

In addition, Taipei Fubon Bank also has representative offices in Jakarta, Indonesia and Sydney, Australia.

In January, Fubon Financial retained the title of most profitable financial institution in Taiwan after it raked in NT$14.07 billion (US$467 million) in net profit, up 131 percent from a year earlier with earnings per share at NT$10.8.

Taipei Fubon Bank also posted a new monthly high of almost NT$3.5 billion in net profit that month.