Australia and New Zealand Banking Group (ANZ) today said it had re-entered the Indian banking sector after a decade, opening its first branch in Mumbai. It has appointed Subhas DeGamia, a veteran with ANZ in institutional banking and financial markets, as chief executive of its India operations.
ANZ had exited from India in 2000 after it sold its Grindlays Bank unit to Standard Chartered Plc. After deciding to return, it received Reserve Bank of India’s (RBI) approval for a banking licence in October 2010.
The bank has a technology and back office processing centre in Bangalore, which employs around 5,000 people.
“The opening of the Mumbai branch re-establishes ANZ’s banking presence in India...India is an integral part of our super-regional strategy,” said Alex Thursby, chief executive of the bank’s businesses in the Asia Pacific, Europe and America.
The Mumbai branch will initially support corporate and institutional banking clients in India and ANZ’s clients abroad who’d be looking for business in this market. It is to also aid trade and investment flows between India and the Asia-Pacific, including Australia and New Zealand, Europe and North America.
The branch will offer the full range of Indian rupee and foreign currency banking services, including funding and hedging solutions, trade finance, cash and payments, foreign exchange and debt capital markets. It will provide clients access to ANZ’s expertise in natural resources, agriculture and infrastructure, the bank said.
Thursby said ANZ decided to re-enter this market as it wanted to capitalise on the trade links between India and Australia, which have strengthened in recent years. “India’s trade with Asia has doubled over the past five years and its investment across the Asia-Pacific region, particularly in natural resources, has increased significantly in the last 12 months. It has become Australia’s fourth largest export destination, driven by rapid economic growth and demand for natural resources,” he said.
Currently, ANZ has eight million clients in 32 markets across the globe.