Sarmayeh Bank will open branches in the UAE, Oman, Russia, Italy and the Czech Republic, by April 2017, said its CEO, Mohammadreza Khani.
Following new regulations in the Iranian banking system since August 2016, both private and public banks got the permission from the Central Bank to transfer foreign currencies at the market exchange rate.
This opportunity has increased the banks’ interests in foreign exchange activities. Applying the market exchange rates, banks are more eager to purchase foreign currencies from foreign investors, exporters as well as foreign offices and embassies in Tehran at the market exchange rate.
Sarmayeh Bank is thus seriously in pursuit of closing the case on its major debtors in order to open its foreign branches.
Recently, Sarmayeh Bank has approached the Tehran Judiciary to seek help in the collection of its debts. The total debt owed to the bank is 80 trillion IRR ($2.4b), 20 trillion IRR ($600m) of which are delay penalties.
“There are a total of 31 real and legal debtors. The amount of their debts range from 2 trillion IRR ($60m) up to 12 trillion IRR ($370m) which is related to the case of our largest debtor”, said Mr Khani, CEO of Sarmayeh Bank, without giving any detail of the largest debtor.
Currently, less than 2% of the Sarmayeh Bank debts have been collected. With legal actions, the bank expects to collect up to 70% of its debts by fall 2017.
Khani pointed out that the banks resources have grown by 64% based on the latest figures and said: “Some time ago, Sarmayeh Bank was one of the Iranian banks which was most in debt. Currently 97% of the inter-banking debts have been cleared. Furthermore, our bank has no debt to the Central Bank in the banking system”.
Sarmayeh Bank was founded in December 2005 as the sixth Iranian private bank with the initial capital of 3535 billion IRR ($390m at 2005 exchange rate). Five years later Sarmayeh Bank increased two-folded its capital to 7070 billion IRR (today equivalent to $218m).
Values have been exchanged at the official exchange rate.
