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| R Seetharaman: “Banking is no longer local, it is global” |
Doha Bank stays focused on Qatar, which is stable and functional, and also in the region where growth opportunities exist, says Group CEO R Seetharaman.
“Everything is happening here…in the region. When the global market is in turmoil, we don’t need to go and experiment locations,” Seetharaman said in an interview with Gulf Times.
In Qatar, Doha Bank would continue to grow, he said.
“We will have 6% to 7% growth in macroeconomic terms, annually. Qatar market is stable and functional,” Seetharaman said.
He said Doha Bank would add branches and ATMs in the country and continue to design “new and innovative” products in both retail and wholesale banking.
“In non-funded business, we have the highest market share. We also have the best market share in contract financing and the small and medium enterprises sector (SMEs). We are going to concentrate in these areas,” Seetharaman said.
Within three months, he said, Doha Bank intends to set up its operations in Abu Dhabi.
“We have got a licence to set up our operations in Abu Dhabi. We are already in Dubai and Kuwait. And it is no secret that we have applied for full-scale branch licence elsewhere in the region. We will surely expand to other Gulf countries, if we get the licence,” the Doha Bank Group CEO said.
Doha Bank, he said, has always been having a “synchronised growth”.
“I am the byproduct of the economy. Banking is no longer local, it is global. In that perspective, we run our enterprise,” Seetharaman said.
In nine months up to September, Doha bank has done better than the previous year period. And since 2002, Doha Bank’s growth showed only one trend – upward.
Doha Bank’s return on average equity (of about 30%) in the last eight years is among the highest in the region.
“The logic is very simple. We believe in sustainability…and in organic momentum. That’s our yardstick.
“Right from the beginning, we have made it clear- we need not be the biggest, but the best. That’s Doha Bank’s operating philosophy.”
Seetharaman stressed the need for “proper optimisation” of resources given shrinking margins and falling returns.
“Definite challenges lie ahead given the state of the global economy, which is in turmoil. Today’s main challenge is to realign one’s business model with changing market dynamics, both regional and global.
“At Doha Bank, we have not gone into greater acquisitions and diluted short term earnings. We have not acquired big institutions, wherein as a local bank, we have to share our resources. What we have taken is an organic momentum. It has worked for us, and will continue to work for us.”
Asked whether the local banks were performing just because of the local economy’s strength, Seetharaman said, “Certainly, banks are doing well because of the financial stability in the economy. You also need to give credit to the right model, which Qatar envisaged – public - private partnership (PPP).
“Banking is public, global. Qatar government took the right decision to partake in the bank capital, because more than shareholders money, it is public deposit that drives the customer trust. It is a right vision.
“Similarly, when the stock market was depleting 40% in February 2009, it was a prudent decision to buy the local equity portfolios of banks with a view to improve risk profile, liquidity and profitability. It was a right decision because shareholders have been protected. The local market did not deserve the 40% fall in the first place.
“The market went down because of the global imbalance. Hedge fund owners or private equity guys who came to this market because of the market liberalisation, were disinvesting and running away from here because of their home markets, which got dried up fast. The local market crashed because of this, while we know the fundamentals were strong, the corporate earnings were good,” Seetharaman added.
