Interview with the new Al Salam Bank – Seychelles chief executive Asim Kumar |16 June 2017
‘Al Salam Bank will commence onshore banking shortly’
Al Salam Bank ‒ Seychelles branch opened its doors in May last year and recently a new chief executive officer (CEO), Asim Kumar, was appointed.
Mr Kumar is from India and has worked in the banking sector for the last 25 years in India and in Bahrain. He has worked in most of the spheres in the banking system and was instrumental in starting retail banking operations for one of the leading Indian banks in Bahrain. He got the opportunity to work in Al Salam Bank in Bahrain and was then asked to move to Seychelles which he says is very beautiful and a nice country.
Seychelles NATION met Mr Kumar, who said he feels very much at home here, to know the present status of the bank and its strategy.
Seychelles NATION: After a year in operation, what is the status of Al Salam Bank?
Asim Kumar: We are currently catering largely to offshore clientèle. But we are in the process of building our team to launch onshore banking too. We are preparing to start our retail operations from new premises. We will be moving to a new building which is going to be ready very soon. We are also upgrading our IT system with support from our Group IT Team in Bahrain. The process for connecting to the local payment network is also under process. Furniture and ATM will be arriving shortly. We are ensuring that all the requisite infrastructure is in place before launch of our retail operations.
Seychelles NATION: Where will you be located and when will operations start?
Asim Kumar: We will be moving to the new building next to Nouvobanq. We are hopeful of commencing our retail operations in the fourth quarter of 2017.
Seychelles NATION: What type of bank will it be and how will it benefit the Seychellois?
Asim Kumar: We will offer full commercial banking and all the basic products like current/savings accounts, fixed deposits, financing facilities, trade finance, etc. Given that Al Salam Group is a pioneer in Islamic banking services, the full bouquet of Islamic Financial Products and Services will be available. Our main focus will be on efficiency of services, customer satisfaction and accessibility to the customers at affordable and transparent charges.
Seychelles NATION: How is the financial stability of the bank in its present offshore operations?
Asim Kumar: Al Salam Group took over the management of this bank in May 2016. We also have a strong partner, the Seychelles Pension Fund, with 30% shareholding. The Bahrain-based parent bank owns assets aggregating US $4.5 billion with equity base of US $850 million and registered a net profit of US $12 million for the year ended December 2016. It is one of the leading Islamic banks in Bahrain promoted by eminent personalities in the Gulf. The bank has a strong management team to support the board. The bank is listed on Bahrain and Dubai stock exchanges. In the last five years, Al Salam Group has acquired two banks and BMI was one of them. Al Salam Seychelles has a reasonable client-base. With a balance-sheet size of around US $39 million and equity base of US $5 million, we reported a profit of US $173K in 2016. With the broadening of our client base with the launch of retail operations, the business will further improve.
Seychelles NATION: What is Al Salam Bank’s vision for Seychelles?
Asim Kumar: We intend to become a preferred destination for our customers. We will offer one-stop solution for all their banking needs at reasonable costs and in the process maximise the returns for our stakeholders. We have a long-term strategic plan and are here to stay. Al Salam group already has presence in Africa and we look to Seychelles to being a hub for enlarging our imprint in the continent. Seychellois are very friendly and I am getting the maximum support from my staff who are all locals. We have a mid-sized team and, as the business grows, we intend to recruit and train more of the local talent.