ANZ seeks RBI nod for retail banking

The Australia and New Zealand Banking Group (ANZ) today said that it would pursue a banking licence in India and later explore acquisition opportunities.

The bank, which has a presence through ANZ Capital, a non-banking finance company focused on trade finance and corporate banking, has sought permission from the Reserve Bank of India to pursue retail banking in the country. In addition, it has technology and back-office operations in Bangalore employing around 3,500.

ANZ has identified China and India as two key markets. It, however, did not buy Royal Bank of Scotland’s (RBS) retail and commercial banking assets in these two countries while announcing a $550-million acquisition of the Edinburg-headquartered entity’s franchise in six countries — Singapore, Taiwan, Indonesia, Hong Kong, the Philippines and Vietnam.

“I think, India is quite a large and complex business proposition, and we do not have people on the ground to cope with the management challenge of integrating it (RBS and ANZ) and (dealing with) regulatory aspects,” ANZ CEO Mike Smith said, when asked about why the bank’s bid to acquire RBS did not materialise.

“We would love to become bigger in India. We are waiting for a banking licence… It is just that we have to be realistic, we have to be able to walk before we run. Something may happen that will allow us to acquire a bank in India,” Smith added.

Sources said that ANZ, which sold its Indian retail banking operations to Standard Chartered at the start of the decade, faced hurdles in acquiring branch licences with RBS, which operates in India through ABN Amro’s 31 branches.