They left India about ten years ago and many thought it was for good. But now the Australia and New Zealand Banking group has decided to come back to the country and they have made Mumbai their first choice for setting up their inaugural branch in the country.
With approval received from the Reserve Bank of India to resume its operations in the country the banking group is quite enthusiastic about their prospects here. They are expected to set up their first branch in the metropolitan city of Mumbai by 2011. This could sufficiently boost up the making of the navi Mumbai.
Prefixing a profit target of profit of around $9.50 million within three to four years following their resumption of business in India, the ANZ, the fourth largest bank of Australia intends for fast growth in the Asian market.
‘‘India is a real market of substance,” Alex Thursby, CEO, Asia Pacific, Europe and America, ANZ said. ‘‘I am confident it will give us a good part of the A$1.5 billion 2012 targeted profit from Asia.”
Selling out its assets to the Standard Chartered Bank, ANZ made its exit from India about ten years ago. At that time the bank was known as the ANZ Grindlays Bank and was also the second largest among all overseas banks in the country. They had to wait a couple of years before receiving the banking license from the RBI.
While a confirmation from the RBI is awaited, if the ANZ comes back, it will join the elite group of the other leading foreign banks in India, namely the Citigroup, Standard Chartered, HSBC, as well as the Deutsche Bank that are always part of the financial news in Mumbai.
Both India and China has become the target of foreign investors in the recent years with a lot of liberalization of the foreign investment policies by both the countries. Also the fact that together the two highest populated countries constitute nearly 40% of the entire banking market in the world and the largest in Asia, has also prompted ANZ to take their decision to come back after ten years.
From India’s point of view arrival of foreign banks and investors would be welcome as it may open up further avenues of economic relationships with affluent overseas countries like Australia and New Zeland.
“We welcome any foreign banks and investors as long as they work within the approved guidelines and for the benefit of the customers in the country. They will however be accountable for all their actions to the local law and RBI for all their actions just like any other Indian Bank”, commented a top official of RBI.
While the setting up may be in line with the Mumbai shopping festival, It remains to be seen what strategies the ANZ adopts once it arrives and resumes its business in India.
