Our focus will remain in corporate investment and private banking: Barclays India MD

Interview with Ram Gopal

Even as India’s economic growth is expected to pick up gradually and private investment remains low, Barclays believes there’s no dearth of investment opportunities in India. Similarly, Indian companies would continue to go out – to the UK or the US. It’s here the bank would focus on serving these clients, Barclays India managing director and chief operating officer Ram Gopal tells Indivjal Dhasmana on the sidelines of the India-UK Technology Summit.

Edited excerpts:

You have not been aggressive as far as the retail segment is concerned in India. You closed some of your businesses. What is the sense going forward about your strategy for India?

 

We’re focused on corporate investment and private banking business. This is a strategy that has worked and if you look at our financials for the past three years, the results show. Going forward, our view is that we’ll continue to be focused on these businesses. Our strategy is to serve multinational companies that have interest in India and get access to financial services for large Indian companies that have got interest in the UK or the US.

You recently managed the sale of Alliance Tires to Yokohama Rubber in one of the largest cross-border mergers and acquisitions (M&A) deals this year. How do you see M&A activities in India going forward, as the economy is only slowly picking up and private investment is subdued?

If you look around, you’ll be hard-pressed to find economies where you have growth rate in excess of 5-5.5%. If you think from the client’s perspective, they’d like to be invested in prospects around India. As a result, business is there in serving either Indian companies that have got interest outside or companies outside which have got interest in India. We continue to see activities because this is one of the few markets, which is possibly positioned better than others around us. 

Which sectors might see M&A activities?

I would not like to comment on which sectors. Generally, what I can say is that given how we’re positioned, India seems to be one of the few markets where there are plenty of opportunities. Pick any sector, you can see potential and hope. And, there’s positivity that they’ll turn around the corner.

Do you see the impact of Brexit on your activities in India because there were reports that Barclays could shift its focus away from London if a hard Brexit compromises its passporting rights?

I was privileged to be in the conservation on Monday where both the Prime Ministers (Narendra Modi and Theresa May) addressed the delegates. One of the things the British PM said was that the UK has in the past been open for businesses. It will possibly take a little more time to see how Brexit plays out. The British PM also said this was the first trade mission (to India) after she has taken over. The UK has been open for business, and Barclays has been open for business. We’ll have to wait and see when Brexit finally fructifies. 

Do you see any negative impact from that?

We’ll have to wait and see exactly what the contours are. If the statement of purpose and intent the British PM carried on Monday that the UK will have bilateral relationships that continue to position London as a pre-eminent financial centre, then perhaps there’s not much impact of Brexit.