Whalesbook
Branch Closure and Representative Office Model
Doha Bank has announced it will close its branch operations in India, shutting down its Mumbai and Kochi branches. The decision, approved by the bank's board, marks a significant change in its strategy after operating full branches in the country for over ten years. The bank plans to operate only through a representative office. This move is different from its earlier goals for deeper market entry. The transition is subject to approval from Indian regulatory authorities.
Doha Bank started its India operations in June 2014, with its first branch in Mumbai followed by another in Kochi. Initially, the bank aimed to benefit from India's growing economy and boost money transfers between the Gulf region and India. In 2016, Doha Bank even considered setting up a dedicated subsidiary in India, showing optimism for its long-term presence. However, this current change reflects evolving market conditions and priorities.
Why Foreign Banks Scale Back in India
Doha Bank's decision to close its Indian branches follows a similar trend among foreign banks operating in India. Several global banks, including Citibank and Royal Bank of Scotland, have previously reduced or exited their retail operations in the country. This pattern is due to several factors, including intense competition from strong domestic banks, the difficulty and expense of meeting India's regulations, and changing global strategies.
The Reserve Bank of India (RBI) has focused more on strict compliance, local setup, and oversight. These requirements can be a bigger challenge for foreign banks with smaller operations than for large domestic banks. Recent draft regulations from the RBI for 2025 propose making it easier to set up and close offices, while also strengthening compliance and oversight. For foreign banks, the retail banking sector has become tough due to small scale, less brand recognition, and profit pressures. This has led many to focus instead on corporate banking, wealth management, and institutional clients.
Doha Bank's Financial Strength
Despite this strategic change in India, Doha Bank has shown financial strength and growth in its home market. For the full year 2025, the bank reported a net profit of QAR 920 million, an 8.0% increase year-on-year. Its total assets stood at QAR 120.2 billion as of December 31, 2025, with net loans and advances reaching QAR 67.7 billion. The bank has strong capital levels, with a Common Equity Tier 1 ratio of 13.16% and a Total Capital Adequacy Ratio of 19.05%. As of March 2026, Doha Bank's market value was approximately QAR 10.05 billion, with a P/E ratio around 10.1x. The bank's shares traded around QAR 3.30 in late March 2026.
A Pragmatic Market Response
Closing its Indian branches represents a strategic pullback for Doha Bank. This suggests the Indian retail market, despite its size, brought more operational and profit challenges than expected. While foreign banks can react faster to monetary policy changes than domestic banks, ongoing competition and regulatory demands seem to have made a broad branch strategy less appealing for Doha Bank in India. The shift to a representative office focuses on keeping relationships and handling specific international deals, rather than growing retail or corporate banking through branches. This move is a practical response to a market where growing retail operations has become much harder for foreign companies, unlike the growth-focused approach seen in 2015 and 2016.