Societe Generale opens third branch at Sanand in Gujarat

Ahmedabad: Societe Generale, a French multinational bank, has opened it's third corporate banking branch at Sanand, near Ahmedabad in Gujarat. It already has branches in Mumbai and Delhi. 150-year old bank believes that Gujarat is one of the robust place in the India and hence it will give good opportunities for bank to expand its base in the Indian market.

"Gujarat is one of the dynamic and investor friendly states in India in terms of economic growth. It offers quality infrastructure compared to other states,"said Marc-Emmanuel Vives, Chief Executive and Group Chief Country Officer in Ahmedabad during press conference.

"State has very diversified industrial base and many industries are setting up their bases in Gujarat," he added. The state is home to various industries like chemicals, oil and gas, fertiliser, pharmaceuticals, automobiles, and engineering. Bank will provide all-types of financing, both short-term working capital lines and medium-long term equipment or project finance, in Indian as well as foreign currencies, from Sanand.

Other specialised advisory and financing activities like merger and acquisition, project finance, equipment and commodities financing will also be made available to clients in Gujarat. Bank will expand in Bangalore, Chennai, Hyderabad and Pune in next three years, added Vives. The Societe Generale branch, staffed with five people, working to market the Bank across Gujarat.

Societe Generale Group has established several other businesses within the country, which includes two joint ventures with State Bank of India, in the areas of mutual funds and custodial services, as well as 100% subsidiaries in car fleet management, brokerage and IT services. Sanand, however, was not the first choice by Societe Generale said Mr Vives.

"RBI allowes new branches to come-up in the under-banking area. Hence, we have selected Sanand. I think we are well placed as lot of companies are coming with the new projects here," he added.

Societe Generale's Indian business has been growing at 50% CAGR in past three years and expects to equal its Chinese business in next three-years. While commenting on the Indian economy, Vives said that, "We are positive about Indian economy, however, not over optimistic,". Bank sees 6% GDP growth for the fiscal 2013-14. "Reforms measures taken by government since September will take time to generate results,".