ANZ receives RBI support
(17 February 2010 – India) The Reserve Bank of India has finally backed Australia and New Zealand Banking Group’s (ANZ) bid to re-enter the Indian market, recommending to the government that the bank should be granted a banking licence to begin operations in Mumbai, according to India’s Economic Times.
Several members of the nation’s inter-department committee (IDC), which approves all proposals involving foreign banks, have given their consent to the proposal.
ANZ’s chief executive officer, Mike Smith, will be pleased by the news as he pushes forward with the bank’s super regional strategy focusing on development within Asian countries.
An finance ministry official told India’s Economic Times that the final decision now rests with the finance minister.
ANZ, which was previously amongst the top three foreign banks in India, sold its 41 ANZ Grindlays branches to Standard Chartered for US$1.34 billion (A$1.5 billion) in 2000 and has been eager to re-enter the market ever since.
India’s Economic Times reported that ANZ’s involvement in the Harshad Mehta-engineered 1992 securities scam and the decision to exit from the country has been largely seen as the reason for RBI going slow on the bank’s re-entry into India.
The Bank is currently present in India through its ANZ capital, a non-banking finance company, and a back office operation in Bangalore.
ANZ’s chief executive officer, Mike Smith, will be pleased by the news as he pushes forward with the bank’s super regional strategy focusing on development within Asian countries.
An finance ministry official told India’s Economic Times that the final decision now rests with the finance minister.
ANZ, which was previously amongst the top three foreign banks in India, sold its 41 ANZ Grindlays branches to Standard Chartered for US$1.34 billion (A$1.5 billion) in 2000 and has been eager to re-enter the market ever since.
India’s Economic Times reported that ANZ’s involvement in the Harshad Mehta-engineered 1992 securities scam and the decision to exit from the country has been largely seen as the reason for RBI going slow on the bank’s re-entry into India.
The Bank is currently present in India through its ANZ capital, a non-banking finance company, and a back office operation in Bangalore.
Subscribe