India offers both scale, momentum - a rare combination today: Vikram Sahu

Vikram Sahu says the country is central to the bank's global growth, citing strong GDP prospects, rising client demand and robust IPO and M&A momentum

Vikram Sahu, who took charge in December as Bank of America’s India chief executive officer (CEO) and country executive, says the country is a strategic priority for the United States-headquartered universal bank and a material contributor to the bank’s revenues and its profitability in the region and globally. In an exclusive interview to Manojit Saha in Mumbai, Sahu says India and the United States (US) share a deep, symbiotic partnership that is more enduring than any temporary differences. Edited excerpts:

 

What are your immediate priorities as CEO? 

My immediate priorities are clear: Serving clients and teammates within our framework of “responsible growth”. 

Starting with clients, we aim to serve them in the way they need and expect from us. We serve domestic clients with their needs in India and globally, as many of them now have international ambitions. We are equally committed to our global clients who rely on us worldwide and increasingly look to us for support in India. This reflects our deep roots and long-standing heritage in India. It is a continuation of what has always been core to our organisation. 

Turning to our teammates, we know that nothing can be achieved without ensuring we have the right talent and the right environment for them to thrive. 

Finally, we are focused on driving the organisation’s ambitious growth aspirations in a manner that is fitting with regulatory expectations.

 

Five years down the line, where do you want to see Bank of America in India? 

India is a strategic priority for the firm, and our aspirations are anchored in “responsible growth”. This market is integral to our global vision, and we will continue to strengthen our presence and capabilities here. 

We expect to be larger and more impactful than we are today, not just in scale, but in the value, we deliver to clients and the opportunities we create for our people. The direction of travel is clear: India is and will remain a driver of our global growth strategy.

 

Are there any gaps which you want to plug? 

We have a formidable platform, not just in India, but for our international operations where we operate in 37 countries, covering 80 per cent of global gross domestic product (GDP) outside the US, and our presence in these markets is comprehensive.

When I look at our range of businesses here, it is broad and well aligned with client needs. So, there are no significant gaps to plug.

 

Why is India so critical in the bank's international growth strategy? 

India is critical to our international growth strategy for two fundamental reasons. First, we go where there is GDP growth and economic dynamism, and India is the fastest-growing large economy in the world. Second, we go where our clients need us to be. Increasingly, our clients, both domestic and global, see India as important to their strategies, and they expect us to support them here.

India sits squarely at the intersection of these two drivers: robust economic growth and strong client demand. India is a material contributor to the bank’s revenues and its profitability in the region and globally. These factors make India it a natural and essential priority for us, and the intention is to grow our business in India.

 

Have the current relations between the US and India impacted business? 

US-India relations have had no adverse impact on business. These two nations share a deep, symbiotic partnership that is far more enduring than any temporary differences. Friends may occasionally disagree, but the strength of this relationship ensures resilience through such moments. 

From our perspective, client engagement remains robust. We see no reduction in interest, activity, or strategic planning around India. The reality is clear: US-India relations are built on shared economic and strategic priorities, and that foundation continues to drive confidence and growth.

 

How do you assess India’s medium- to long-term growth outlook and which are the structural factors that give you confidence? 

India’s medium to long-term growth outlook is compelling, and several structural factors give us confidence. First and foremost is India’s human capital: skilled, ambitious, and supported by favourable demographics. Second, the strength of its institutions provides stability and predictability. Third, the trajectory of reforms has been consistently positive, with sustained efforts to improve ease of doing business and attract foreign investment. 

Recent legislative activity, including a busy winter session of Parliament, underscores the government's commitment to reform. These factors, combined with strong consumption, investment momentum, and public spending, create a powerful growth engine. Our economists have recently upgraded India’s GDP forecast to 7.6 per cent for FY26 (from 7.0 per cent) and 6.8 per cent for FY27 (from 6.5 per cent), driven by robust indicators such as fuel demand, power generation, auto sales, and credit growth. While trade headwinds may moderate these numbers, the long-term outlook remains strong. 

Global firms, including ours, are drawn to India because it offers both scale and momentum — a rare combination in today’s world.

 

What would be your suggestions to the regulators to improve the ease of doing business in India further? 

Both the Reserve Bank of India (RBI) and Securities and Exchange Board of India (Sebi) have taken a highly constructive approach toward improving the ease of doing business in India, and we deeply value that. At Bank of America, our mantra is responsible growth, and we are strong advocates of robust regulation. Regulations are essential for the orderly functioning of institutions and markets, and we fully support that framework. 

The RBI’s initiatives, such as the consolidation of circulars, are excellent steps forward. The same holds true for Sebi’s initiative around the Securities Market Code. Streamlining overlapping regulations and closing gaps will further enhance clarity and efficiency. We understand that regulators are committed to this iterative process, and we welcome it. 

In short, we are very encouraged by the tone and actions of the regulators and remain fully aligned with their efforts to strengthen India’s financial ecosystem.

 

Bank of America has several lines of business in India. Which one will you focus more to drive growth? 

I would say, all of them. One of the advantages of being a universal bank is the ability to operate across a broad spectrum of businesses. Market conditions may favour one line of business at a given time while another experiences a softer phase, but this diversification smooths out volatility and allows us to invest consistently. 

Our equity business is a strong pillar, as is the fixed-income business. Our corporate and investment banking franchise is equally robust. There is no “favourite child” among them. Each plays a critical role in serving clients and driving growth. Cycles will come and go, but our strategy is to stay invested across the board because we know the upturn always follows. That is our strength as a universal bank.

 

Coming to initial public offerings (IPOs), how do you see 2026 for the IPO market? 

We see no slowdown in issuance or investor appetite. The IPO pipeline remains robust, with industry estimates of over 190 companies eyeing more than $25+ billion in fundraising. While macro volatility may influence timing, the underlying momentum is strong. 

What is notable is the shift toward quality over quantity. Issuers are emphasising fundamentals: Governance, clarity on the use of the proceeds, long-term cash flow visibility, and profitability. This is a healthy evolution for the market. 

Barring any major dislocations, 2026 should be as active as 2025, which was a historic year for issuance. The depth and quality of India’s IPO market remain attractive.

 

Do you expect the momentum on mergers and acquisitions (M&As) to continue also? 

The M&A environment in India is strong, and we expect that momentum to continue in 2026. In 2025, according to industry estimates, M&A volumes surged 81 per cent year-on-year to $87 billion, driven by a significant uptick in strategic and cross-border deals. Strategic transactions reached their highest level since 2010, more than doubling to approximately $65 billion from $30 billion in 2024. Cross-border deals also had one of the best years on record, with announced volumes of around $42 billion in 2025 versus $11 billion the previous year. 

Boards are increasingly focused on value alignment, scale expansion, and capability enhancement, which is fuelling interest in M&A opportunities. The deal pipeline for 2026 looks even stronger with high intent and execution across sectors, though valuation levels remain a consideration. For strategic buyers, growth strategies centre on expanding market share and acquiring technology capabilities. For sponsors, the focus is on high-growth sectors, tech-led stories, and bolt-on acquisitions to scale up portfolio companies for IPO readiness. 

We see robust interest across sectors, with cross-border themes becoming more pronounced. Attractive areas include artificial intelligence, software as a service, healthcare, consumer wellness, banking, and green energy, supported by favourable government policies. The outlook for M&A remains positive.

 

How is Bank of America planning to capitalise on the opportunities in the investment banking space? 

Our strength lies in our people. We have significantly strengthened our investment banking and equity capital markets capabilities in India. Over the past year, we have enhanced leadership and deepened our bench across investment banking and equity capital, ensuring we have the right expertise to advise clients on complex transactions. This investment reflects our confidence in the growth of India’s M&A and capital markets and our commitment to being a trusted partner for clients navigating these opportunities.

 

What makes you confident about investment banking business in India? 

Just like CY25, 2026 is shaping up to be another strong year, barring any sort of market dislocation. In investment banking, India set a record for banking fees last year, crossing the $1 billion mark as per industry estimates. We expect that interest to continue. The drivers are clear: strong corporate balance sheets, cross border opportunities, sustained economic growth, and an environment that supports strategic consolidation and expansion. We see global clients being active as they continue evaluating strategic alternatives for India subsidiaries, Indian companies to continue accessing capital markets as they scale up aided by government initiatives, and sustained sponsor activity across sectors.

 

Are there any slowdown concerns in this space? 

In investment banking, as in all of our businesses, we recognise that cyclicality is inherent. Markets do not move in a straight upward trajectory, and periods of heightened activity are often followed by slower phases. These cycles can span several years before momentum returns. However, as a universal bank with a diversified business model, we are well positioned to navigate these fluctuations. We operate with a long-term perspective, prepared to manage through periods of volatility while continuing to support our clients consistently. Having been present in India for more than 60 years, our commitment is to remain a trusted partner and to grow alongside with our clients. We view India as a compelling, long-term growth story, one that we are deeply invested in and intend to continue contributing to over the years ahead.

 

Finally, based on your interactions with clients worldwide, what makes India a resilient destination for long term investment? 

The India story is pegged on the following fundamentals: Strong human capital, favourable demographics, established democratic norms, and robust regulatory and judicial guardrails. India is also home to a deep and growing pool of high-quality companies. When you put all of these elements together, it creates an environment that consistently attracts global capital.

There will, of course, be periods where valuations appear stretched. In 2025, for example, many foreign institutional investors felt that Indian equity valuations were rich relative to historical levels and were waiting to see whether corporate earnings would justify those higher multiples. As a result, foreign institutional investors were more cautious, while domestic investors continued to provide steady inflows. But that is a tactical, year-to-year allocation decision and not a shift in the long-term view. India’s structural drivers remain intact, and the long-term mindset around India among international investors has not changed.