India's leading private sector lender, HDFC Bank has opened its first overseas full-fledged commercial branch in Bahrain, after been granted a full commercial branch (FCB) license by the Central Bank of Bahrain (CBB).

The new Bahrain branch with a 25-member staff will offer cash management and trade finance solutions to corporate clients and wealth management services for NRIs.

CBB Governor Rasheed Al Maraj inaugurated the new branch on the 49th floor of the Bahrain Financial Harbour. "The HDFC presence in Bahrain will further consolidate our economic relations with India," said the Governor at the function.

"Already there are a few Indian banks in Bahrain, and one more big Indian financial institution will establish its presence in Bahrain very shortly," he added.

HDFC Bank Executive Director Harish Engineer said, "Bahrain has always been the financial gateway and the banking hub to the Gulf with a firm regulatory framework and an overall dynamic financial sector."

"With increased bilateral business partnerships and investments between GCC nations and India, it was logical for HDFC Bank to use Bahrain as its first stepping stone to increase its direct international presence by opening its first full-fledged overseas branch here to tap the growth potential in the region," he added.

The GCC nations comprise of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates (UAE).

HDFC Bank Managing Director Aditya Puri stated: "To begin with, we will confine ourselves to short-term trade for Indian companies on a matched basis to the tune of approximately $65 million besides high net worth advisory."

According to Puri Bahrain was chosen by the bank on the basis of its excellent location, clean, open and transparent regulations, cost-effectiveness, and good bilateral relations between India and Bahrain.

Bahrain is home to about 2,90,000 Indian emigrants.