JP Morgan Chase is set to offer corporate banking services in India to rise to the challenge of creating a viable business model in the nation.
Earlier in January, JP Morgan had announced its plans to offer corporate banking services only to US clients operating in India. JP Morgan will now, under corporate banking suit of services, offer cash management, working capital, foreign exchange and hedging tools services.
Initially, JP Morgan will commence operations from its Mumbai branch, before expanding to other cities in India. The bank also plans to enter into retail banking sector by partnering with other banks.
Madhav Kalyan, CEO of JPMorgan Chase Bank and head of corporate banking operations in India, said: “A key initiative for JP Morgan in 2010 in India is the launch of global corporate banking as a part of the global launch of the same in high growth countries like China and Brazil. This initiative is driven by the bank’s continuing dialogue with clients around the world who have expressed a desire for expanded global banking operations from us.
“We are already a full-service bank in India with a comprehensive suite of products and custom made technology solutions that allow us to reach out to our target client base, both corporate and retail. Further branch needs will be assessed as part of our ongoing strategy.
“Our niche retail banking initiative is aimed at offerings for US-based non-resident Indian clients, who are familiar with JPMorgan Chase’s retail offerings and also includes banking services that meet the objectives of financial inclusion. While the plans are still being worked out, the strategy will be liability-led and not retail asset products-led.”
Besides India, JP Morgan plans to foray into UK, Germany and Switzerland along with Goldman Sachs and Credit Suisse, to compete with Citi, HSBC and Standard Chartered.