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No major impact on Indian banks in UK post-Brexit: SBI UK chief

Sanjiv Chadha believes that London would continue to be the global 'financial hub'

Press Trust of India  |  London 

A woman holds a Union Flag shopping bag in London  Reuters
Photo: Reuters

There will be no major impact on Indian operations in the post-and the British capital will continue to be the global "financial hub", according to the chief of

Sanjiv Chadha, the SBI's Regional Head for the and chair of the Association of Indian in the country, said that Indian in the are set for a new phase of growth as they prepare to expand operations into subsidiaries.

In reference to Brexit, the chief said he did not foresee a major impact on Indian operations in the and believed that would continue to be the global "financial hub".

"Indian have always followed the diaspora and just as the diaspora has transformed and grown, the Indian are also being asked to subsidiarise as we have also grown," Chadha said on Thursday while addressing a special event here organised to celebrate the contribution of Indian by the Asian Business Publications Limited (ABPL) media house.

"and will have both branch operations and subsidiary operations. The importance of this move is a wider balance sheet size," he said.

The Bank of England's Prudential Regulation Authority had directed British operations of foreign-owned taking deposits of more than 100 million pounds to restructure with their own ring-fenced capital.

Subsidiaries are subject to more complex clearances, while branches are part of a home office legal entity and don't require their own capital base in the

Chadha confirmed that SBI and are set to make the transition from a branch to subsidiary in the next three to six months, following which they will have a dual presence in the

"As the economy has changed, we have changed along with it, with new products on offer. Indian offer by far deposit rates, the best remittance rates to and best interest rates for lending opportunities. As we go ahead, Indian will play a larger role and for that we are willing to go the extra mile," he noted.

His vote of confidence was echoed by NRI industrialist G P Hinduja, the co-chair of the Hinduja Group.

"We are today living in a world of uncertainties, be it the election of Donald Trump or But one thing I can say with certainty is that is the best destination for investments and Indian in the have all the capability to become No. 1 in the UK," Hinduja said.

Saikat Sen Sharma, Counsellor (Economic) at Indian High Commission in London, concluded: "sees more as an opportunity and we are confident will retain its position as global financial hub."

The event was held at the east branch of Courthouse Hotel, the newest property owned by NRI hotelier Joginder Sanger.

First Published: Fri, February 17 2017. 12:32 IST
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