ANZ Bank set to re-enter India after getting RBI nod

04 Mar 2010

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Australia & New Zealand Banking Group Ltd's regional ambitions got a major boost today after the group got in-principle approval from the Reserve Bank of India for a foreign banking license in India.

The license will allow ANZ Bank to provide a range of retail and wholesale banking services in India. Subject to regulatory approval, ANZ said it plans to set up its first branch office in Mumbai within 12 months, and targets a A$100 million (Rs411 crore) pre-tax profit from India in three to four years.

Melbourne-based ANZ Bank - currently Australia's third-largest bank by market capitalisation - wants to differentiate itself from its Australia-focused peers and transform into a super-regional bank. It has built a presence in countries including China, Taiwan, Indonesia and Malaysia, but without a license in India it had a big hole in its regional footprint.

The approval will see ANZ Bank re-enter the Indian banking market after more than a decade. ANZ used to own Grindlays Bank, and operate as ANZ Grindlays with a significant presence in India, but sold the operation to Standard Chartered in 2000.

"This is an important step for ANZ as part of a long-term commitment to progressively rebuild our presence in India," ANZ chief executive for Asia Pacific, Europe and America Alex Thursby said in a statement.

"There is a significant and growing economic relationship between Australia and India. India is Australia's fourth-largest export market, driven by demand for natural resources, with exports totalling more than A$15 billion in 2008," Thursby said.

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