Reserve Bank of India ( RBI) has granted in-principle approval to Credit Suisse to offer corporate lending, wealth management services other than treasury services, reported The Economic Times.
Credit Suisse has already invested around $203m in its Indian finance company Credit Suisse Finance (India).
Credit Sussie’s office in Mumbai currently employs around 170 people and offers securities, investment banking, merchant banking and wealth management advisory services. The bank has also outsourcing operations in India with a work force of nearly 3,500 people.
Mihir Doshi, CEO of Credit Suisse, said: “We have received in-principal approval, and now we are working to put in place the necessary requirements so that the branch can become operational. Establishing the bank branch will allow us to offer a much wider range of products to our clients in India,” reported the newspaper.
Viren Mehta, director of Ernst & Young India, said: “The advent of new foreign banks in India with a focus on corporate and investment banking will, in the medium term, help increase the breadth of products and services available for businesses in India. The new banks, in addition to the existing players, should be able to assist in deepening the Indian corporate bond market,” reported the newspaper.
Recently, RBI has given green signal to several foreign banks to operate in India including UBS, South Africa-based First Rand Bank, Commonwealth Bank of Australia and Australia and New Zealand Banking Group (ANZ).
Additionally, under a bilateral agreement between India and Singapore, RBI has approved banking license to Singapore’s United Overseas Bank (UOB) and allowed DBS to operate additional eight banking branches across India.