Sentro Group has made a significant move in the world of international finance, announcing its acquisition of a majority stake in the well-established Russian bank, World of Privileges. While the specific financial details of the transaction remain undisclosed, Sentro Group has secured a controlling 50.001 percent ownership in this 29-year-old post-Soviet era lender.
The primary objective of this strategic acquisition is to foster and streamline rupee-ruble trade between India and Russia. This decision aligns with Sentro Group's broader vision to enhance cross-border financial transactions, particularly at a time when India has emerged as a preferred supplier of goods for the Russian market.
In an official statement, Sentro Group expressed its commitment to facilitating and simplifying trade and commerce between these two nations. This move is anticipated to have a significant impact on the economic ties between India and Russia, paving the way for smoother financial interactions and mutual growth.
Naveen Rao, the Founder and Chairman of Sentro Group, articulated the group's ambitious plans for its recent acquisition and expansion in the financial sector. He stated, "Our aspiration is to establish collaborative partnerships with Indian banks and other financial institutions to facilitate mutual Nostro/Vostro accounts. Additionally, we aim to broaden our service portfolio by acquiring a broker license, with a specific focus on catering to retail investors from Russia. This initiative will enable Russian investors to participate in the Indian market seamlessly, leveraging avenues such as FPI licenses and other legally compliant methods.
The overarching vision of Sentro Group is to facilitate ruble-rupee payments for both Russians visiting India and Indians traveling to Russia. This vision is underpinned by the utilization of Indian and Russian settlement systems, including UPI, RU pay card, and others, as detailed by a senior official.
Currently, the bank's operations predominantly cater to nationals from CIS countries. However, the institution is now poised for expansion, with its sights set on key regions such as India, CIS, Saudi Arabia, and the UAE.
This strategic move underscores Sentro Group's commitment to strengthening its presence on the international financial stage, creating a more seamless and efficient environment for cross-border transactions and fostering economic ties between these nations.
Source: Read more at Economic Times
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