이 기사는 2021년 06월 28일 07:24 thebell 에 표출된 기사입니다.

Woori Bank plans to open three more branches in India. When the process is completed, Woori Bank will have the same number of branches as Shinhan Bank, which has the largest business network there.

Woori Bank’s board of directors recently approved its plan to open three more branches in India, industry sources said Thursday. It needs to go through procedures there to complete the establishment.

Woori Bank currently operates three branches in Mumbai, Chennai, and Gurgaon. The new branches are planned to be established in three regions, including Bangalore, where a Kia Motors’ plant is located. However, the location may change during a process to get an approval from the country's financial authorities.

If Woori Bank opens three more branches in India, the number of branches there will be on par with Shinhan Bank, which has six branches in New Dehli, Mumbai, Kanchipuram, Pune, Ranga Reddy, and Ahmedabad. Hana Bank has two branches in Chennai and Gurugram while KB Kookmin Bank runs one in Gurugram.

Woori Bank targets Korean companies doing business there. Chennai, where Woori Bank established its first branch in 2012, is home to many Korean companies’ Indian operations including Samsung Electronics and Hyundai Motor along with some 100 partner companies. Samsung Electronics and POSCO’s production facilities are located in Gurugram.

India is a country with a huge domestic market and abundant labor force based on the world's second largest population. It is emerging as an attractive market for financial companies thanks to its high growth potential with an annual economic growth rate of more than 7%.

A stable loan-to-deposit margin, which reduces uncertainties about profitability, is considered India's greatest strength. Its average loan interest rate is about 9.2%, which is significantly high compared to Korea.

However, it will likely take two to three years for Woori Bank to get approval from the Indian financial authorities after it submits its application for the establishment of its branches there as the country is facing the serious Covid-19 crisis. (Reporting by Hyun-jung Kim)