Eurobank and India collaborate to create strategic business council

Mr. Ioannou raised concerns about whether the bank has a plan to maintain its strong profitability, which has largely come from rising interest rates, and asked about the bank’s liquidity management plans. He also inquired whether a decision has been made on whether Hellenic Bank will remain exclusively a retail bank.

In response, the Chairman of the bank's Board of Directors clarified that the individuals on the board have no ties to Eurobank, a point they have firmly established. He further emphasized that the bank will not operate as a branch or for the benefit of Eurobank Cyprus.

Mr. Rouvas addressed Mr. Ioannou's concerns, acknowledging that while interest rates have helped, the bank is not passively relying on them for profits. "We recognize the need to reduce our dependence on interest income, and we have done so with the acquisition of CNP," he explained. Regarding liquidity, he highlighted that the bank is increasing its investments in bonds and other low-risk placements. Finally, he clarified that Hellenic Bank is not solely a retail bank, as it offers a wide range of banking services and products.

Honorary President of ETYK, Mr. Loizos Hadjikostis, also spoke, noting that ETYK is the third-largest shareholder through its funds. He commented that Eurobank's involvement in Hellenic Bank brings a new dynamic, but emphasized that the board must make decisions that benefit the bank and yield positive results. He pointed out that while mergers and acquisitions are a reality, many have not had successful outcomes.

Meanwhile, yesterday, Eurobank and the Indian Chamber of Commerce (ICC) signed a Memorandum of Understanding (MoU) on September 16, 2024, with the goal of establishing the India-Greece-Cyprus Business Council (IGC). The signing took place at the Indian Embassy in Athens, with Indian Ambassador Shri Rudrendra Tandon in attendance.

Eurobank CEO Mr. Fokion Karavias praised the signing, highlighting that Greece and Cyprus can serve as strategic entry points into the EU for Indian businesses and investors. He emphasized the unique advantages of Cyprus as a dynamic hub for technology and research and a gateway to investment in the EU, as well as the diversified economy of Greece, which offers a wide range of investment opportunities for Indian investors. Additionally, he noted that this strategic partnership with the ICC is just one of many initiatives Eurobank is undertaking to strengthen economic and investment cooperation between India, Greece, and Cyprus. Eurobank also plans to open a representative office in Mumbai after obtaining the necessary regulatory approvals.

The IGC Business Council aims to lay the groundwork for strong bilateral business connections and strategic collaborations, according to ICC President Mr. Ameya Prabhu. He also underscored the appointment of Mr. Antonios Fiorakis as the head of the ICC in Greece as a sign of the deep commitment to the country.

Indian Ambassador Shri Rudrendra Tandon stressed that the MoU includes potential synergies with the India-Middle East-Europe Economic Corridor (IMEC), a resolution for which was adopted at the G20 summit in India and supported at the recent G7 summit in Italy.

With Greece and Cyprus acting as strategic maritime gateways to Europe and the Gulf, their geographical advantages offer India enhanced access to these markets, along with opportunities for collaboration in several economic sectors, including energy. Cyprus ranks among the top 10 investors in India, with cumulative investments exceeding $12.64 billion between April 2000 and March 2023, especially in the services, IT, real estate, and pharmaceutical sectors.

Trade between Greece and India has seen notable growth, rising from approximately $690 million in 2021 to $1.95 billion in 2023, with projections placing it at $5 billion by 2030. India's main exports to Greece include aluminum, organic chemicals, electrical machinery, iron and steel, apparel, plastic products, and spices, while Greece exports to India mineral fuels, aluminum, iron and steel, and fruits.

The three countries have committed to building further strategic partnerships in sectors such as shipping, culture, tourism, security, and trade, with the goal of doubling their trade transactions by 2030. Additionally, opportunities are being explored in areas such as energy, infrastructure, pharmaceuticals, agriculture, and innovation, aiming to create new avenues for trade, investment, and economic growth.