South Korean NongHyup Bank to set up its first Indian branch in Noida, gets RBI’s nod

NEW DELHI: South Korean Nonghyup Bank would soon start its commercial operations in India as it has obtained an in-principle approval for establishing its first branch in India – in Noida, Uttar Pradesh.   

Nonghyup Bank, also known as NH Bank announced on Monday that the Reserve Bank of India (RBI) has awarded in-principle approval to set up its first branch in Noida. The bank is likely to start its commercial operations within this year after getting a formal license to operate as a next step.

With this, the Nonghyup Bank becomes the sixth Korean bank in India to get permission to conduct business in India. Others Korean banks Shinhan Bank, KEB Hana, KB Kookmin, Woori, and Industrial Bank of Korea (IBK) have already entered India. Shinhan was the first South Korean bank to enter India in 1996.  

Jun-hak Kwon, CEO & President, Nonghyup Bank, Seoul, said, “India is an important hub in Southwest Asia with a high potential for development with a consumer market of about 1.3 billion. Through thorough business preparations, we will strive to acquire a license within this year, coexist with the local financial market, and establish ourselves as a financial institution that fulfills its social responsibilities.”

Nonghyup Bank had opened a liaison office in 2016 in Gurgaon to strengthen the competitiveness of the agriculture sector and contribute to the economic development of farmers in India, a country with a long historical relationship.

As part of the management activities of Nonghyup Bank, which focuses on social contribution, it is showing a small but continuous interest and support to the local community.

Nonghyup Bank is evaluated to have achieved this result through active local Environmental, Social, and Governance (ESG) management, such as directly donating oxygen generators through the local Red Cross to India, where the spread of Corona 19 was particularly severe last year, and maintaining a cooperative relationship with Indian Farmers Fertilizer Cooperative organization (IFFCO).

In addition, the New Delhi representative office has been continuously striving to solve the difficulties of rural areas in India through CSR activities.

Hong Sung-chang, Managing Director of Nonghyup Bank’s India Representative Office, said, “I respect the decision of the Indian government to grant permission to open a branch, and I would like to thank all of you for supporting the establishment of the branch, From now on, we will faithfully start preparing for the opening of the branch and open it by the end of the year to contribute to the continuous growth of India’s industry and economy and the development of agricultural and rural areas.”

He said that after successfully establishing its Noida branch, the bank would expand its operations and next set up three more branches in India.

Since its foundation in 1961 in Korea, NH Nonghyup Bank has been striving to strengthen the competitiveness of agriculture, improve the quality of life for farmers, and balance the national economy.

Related article: South Korean NH Nonghyup Bank continues to support Indian schools despite tough times

Nonghyup Bank has been selected as the No.1 social contribution bank in Korea for several years since 2011 and has provided free management consulting for agri-food companies and farmers, public finance fund support, and public benefits fund financial services to support rural communities and the underprivileged. It has been faithfully playing a role in social finance.

Meanwhile, Nonghyup Bank opened Hong Kong and London offices last year and is preparing to open Sydney and Beijing branches within this year.

Last year only, NH Capital, a subsidiary of NongHyup Financial, had acquired about 25 percent of the shares of IFFCO-Kisan Finance ― an affiliated company of IFFCO ― becoming the second-largest shareholder of the agricultural equipment-specialized finance company.

In January, NongHyup Financial Group Chairman Kim Gwang-soo and IFFCO Chairman US Awasthi had signed a share subscription agreement at IFFCO’s headquarters in New Delhi.

This was the first time a Korean financial firm moved into the Indian market through a JV with a local financial company.

With the deal, NH Capital expects to get access to the cooperative’s membership of some 36,000 entities.