ANZ Wins In Principle Approval For Banking In India

Australian banking major ANZ has won an in principle regulatory approval from the Indian central bank for a foreign banking license in the country, which represents an advancement of its ambitions to transform into a super-regional lender.

The licence granted by the Reserve Bank of India will allow the lender to offer a variety of retail and wholesale banking service in India. ANZ says it intends to establish its first branch in Mumbai within a year.

Melbourne-based ANZ, is seeking to differentiate itself from its peers which have tended to focus on the domestic Australian market.

ANZ has built a presence across the Asia Pacific region and the lack of a franchise in India, meant it had a large hole in its regional footprint.

The approval will see ANZ re-enter the Indian banking market after more than a decade.

ANZ used to own the venerable Grindlays Bank in India, which used to boast significant market share in the country, but curiously sold the franchise to Standard Chartered at the start of the decade in 2000.

“This is an important step for ANZ as part of a long-term commitment to progressively rebuild our presence in India. 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 $15 billion in 2008.” Alex Thursby, ANZ’s chief executive for Asia-Pacific, Europe and America said.

ANZ chief Mike Smith said last year that India represented a top priority for the lender, and views both India and China as both regional and global locomotives for growth.

ANZ employs 4500 staff at its support centre in Bangalore.

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