Bouyed by Indian growth trajectories, Barclays plc on Tuesday said it would infuse $70 million in the country for a period of two years from 2006 to foray into the corporate banking business.
The UK-based bank, which has invested $150 million over the past few months to support investment banking business growth, is hopeful of strengthening its presence in the country following talks with the regulatory bank for corporate banking business.
Having operations in India for almost 30 years, Barclays confined itself mainly into investment banking and risk management services.
However, the bank, which finds India "a hugely attractive market" coupled with effective government regulation, would look at organic growth in the country.
Meanwhile, the bank would recruit around 150 people over the medium-term to streamline its corporate banking business, Barclays plc board member David Roberts told reporters here, adding, that of these employees 40 would be appointed in the first year.
The bank would extend services, including lending supply-chain financing, structured trade finance, risk management and corporate liquidity management, he said.
Multinational companies, large corporates and select areas in the small and medium sector would avail the services, he added without defining the parameters for differentiating the one from the other.
Stating that the bank would operate its corporate banking business from Mumbai, Roberts said the bank had "good and productive" discussions with the Reserve Bank of India for opening branches in other locations.
But, he did not disclose the locations fearing breach of prudential norms.
Asked whether the bank would look at acquisitions in India, Roberts said the bank would rather concentrate on organic growth in the country. He evaded a question when asked whether the bank would come out with a non-banking financial corporation in India.
What would be its strategy post-2009? "We will think of our roadmap that time only," he said.
Roberts said Barclays would not delve much deeper into the retail segment in India.
However, he maintained that India offered a great market opportunity and the bank was very positive of Indian outlook.
"We are satisfied with the returns from Indian operations," Roberts said in reply to a question.
