ANZ plans returning to India by acquiring RBS assets: reports
03 Aug 2009
The Australia and New Zealand Banking Group Limited (ANZ) has emerged a leading contender to buy the Indian assets of troubled British banking giant RBS, say reports in the Australian media.
RBS acquired the international operations, which include the Indian franchise of ABN Amro, after purchasing ABN in a three way transaction alongside Fortis and Santander.
According to The Australian, ANZ has received informal clearance from the Reserve Bank of India for a possible acquisition.
As part of its strategy to focus on the Australian market, ANZ sold its India franchise ANZ Grindlays, which had a full banking license and a well established business, to Standard Chartered in the early part of the decade.
According to analysts, that was probably a bit of a blunder, since it will now probably have to pay higher multiples for what is although a larger business now.
Reports last week suggested that ANZ is the front runner for ABN Amro's India operations, ahead DBS and Standard Chartered.
The RBI did say that Standard Chartered would not be able to acquire all the branch licenses that ABN Amro currently possesses, therefore putting it at a distinct disadvantage with either ANZ or DBS, which have a much smaller or even non-existent network in the country.
ANZ told The Australian earlier this month that it remained 'enthusiastic' about the ongoing opportunities in the Asia-Pacific region, including India.
