JP Morgan Chase is set to enter the corporate banking space in India, offering a suite of services such as providing working capital, cash management solutions, foreign exchange and hedging tools. There will also be an element of retail operations, though liability-led, and financial inclusion.
“A key initiative for JPMorgan in 2010 in India is the launch of global corporate banking as a part of the global launch of the same in high growth countries like China and Brazil. This initiative is driven by the bank's continuing dialogue with clients around the world who have expressed a desire for expanded global banking operations from us,” says Madhav Kalyan, chief executive officer, JPMorgan Chase Bank, and head of corporate banking operations in India.
JP Morgan had announced the launch of corporate banking services in late January with a focus on catering to the needs of US clients operating in India. Apart from India, Brazil and China, the United Kingdom, Germany and Switzerland are part of the strategy that will pit JP Morgan against the likes of Citi, HSBC and Standard Chartered. In addition, Goldman Sachs and Credit Suisse are entering the arena.
Kalyan, who spent 13 years at ICICI Bank before moving to JP Morgan, says the bank will initially offer services through its Mumbai branch, though sources say the idea is to add a few more branches in major cities in the country.
“We are already a full-service bank in India with a comprehensive suite of products and custom made technology solutions that allow us to reach out to our target client base, both corporate and retail. Further branch needs will be assessed as part of our ongoing strategy,” says Kalyan.
He is, however, unwilling to disclose details on the retail banking side. “Our niche retail banking initiative is aimed at offerings for US-based non-resident Indian clients, who are familiar with JPMorgan Chase’s retail offerings and also includes banking services that meet the objectives of financial inclusion.
While the plans are still being worked out, the strategy will be liability-led and not retail asset products-led,” he says.
So, cheque banking and deposits-related facilities will be available. But, for credit cards and loans, JP Morgan intends to work with partner banks.
