Source: cyprus-mail.com
Eurobank links Greece, Cyprus and India in new growth push
Eurobank will open its representation office in Mumbai next month, according to chief executive Fokion Karavias, who spoke at a Delphi Forum panel titled building geopolitical resilience.
The announcement comes as the bank advances a strategic move to activate India’s Unified Payments Interface (UPI) system in Greece, making it the first European country where remittances can be sent through UPI in cooperation with NPCI International.
“This is the result of our cooperation with NPCI International in India,” Karavias said.
“We will have the opportunity next month to inaugurate our office in India in Mumbai,” he added.
“We will have the honour of the President of the Republic of Cyprus attending, who will be on an official visit there during the same period,” the Eurobank CEO stated.
“The event will precede a series of business announcements that will demonstrate the strong growth dynamics of relations between Greece, Cyprus and India,” he noted.
The development places Cyprus at the centre of a broader geopolitical and financial expansion strategy, with direct reference to high-level political participation during the launch period.
Outlining the bank’s approach, Karavias stressed that the strategy is built around balancing growth and risk, describing it as a key operational challenge.
He explained that diversification has two dimensions, one being geographical diversification and the other being diversification across business activities.
Turning to the group’s footprint, he highlighted that the bank currently operates in Greece, Cyprus and Bulgaria, with revenue distribution standing at 50 per cent from Greece, 35 per cent from Cyprus and 15 per cent from Bulgaria.
External shocks, including energy market pressures linked to tensions involving Iran, affect global economies differently, he observed.
He pointed out that Bulgaria’s electricity generation is mainly based on nuclear power, while tourism contributes significantly less to its GDP compared with Greece and Cyprus, which results in varying levels of resilience across economies.
According to Karavias, the majority of revenue still comes from traditional banking operations, as is the case for most Greek banks.
A key pillar of the bank’s strategic business plan through 2028 is the strengthening of wealth management and insurance activities.
He also referred to a significant transformation in technology and business model execution at the bank’s subsidiary in Luxembourg, aimed at further strengthening wealth management operations.
On risk management, Karavias explained that liquidity and credit risk remain the core traditional risks banks handle in line with their business models.
He added that after the global financial crisis and the evolution of the regulatory framework, banks have become more effective in managing these risks.
At the same time, the Eurobank CEO said that new risks are emerging, particularly cyber security, which has become increasingly important over the past decade.
According to Karavias, organisations are now more exposed to external factors beyond traditional economic cycles.
He referred to the war in Ukraine and recent developments in Iran as having created a volatile geopolitical environment affecting the global economy, businesses and the financial sector.
He stressed that in any crisis, the condition of an economy at the point of entry is critical, drawing on Greece’s experience during its financial crisis 15 years ago.
Moreover, the Eurobank chief said that Greece is entering the current period from a much stronger position compared with its past and also relative to other European partners.
He added that beyond fiscal strength, Greece now has a banking system that has recovered and stands in a solid position, describing this resilience as something built during favourable periods.
He also referred to ongoing debates around economic and financial policy, noting that resilience often develops in contrast to calls for looser regulatory approaches.
Finally, Karavias said that beyond geopolitics, technological progress plays a dual role, as it can both support better risk management and simultaneously become a source of risk in its own right.