Abu Dhabi Commercial Bank (ADCB) has announced plans to withdraw from India in order to focus on the domestic market.
In a statement to the Abu Dhabi Securities Exchange, the UAE-based lender said that it will divest majority of its banking portfolio in India to DCB Bank.
Upon deal completion, which is pending regulatory approvals, ADCB will pull-out from the South Asian nation. ADCB noted that the deal will not affect its profitability.
The portfolio to be sold includes AED355m ($96.6m) in assets and AED601m in liabilities. The sale will be made at par, the regulatory filing said.
“ADCB’s priority remains to provide excellent service to the customers throughout the transition period and to ensure a smooth migration to the DCB Bank,” the statement added.
The move follows the combination of ADCB with two other domestic peers Union National Bank and Al Hilal Bank. In May, the three lenders formally completed their merger to create the third-largest lender in the UAE with around $115bn in assets.
On the other hand, DCB Bank is a private sector commercial lender in India. It boasts 333 branches across 19 states and three union territories in the country.
Earlier this year, DCB Bank launched its open banking platform. The participants in the effort will be able to access its open banking platform APIs and share expertise on developing new products.