Swiss giant Credit Suisse gets Indian banking licence

Swiss banking behemoth Credit Suisse has received in-principle approval for opening a bank branch in India.

The bank plans to start off with a branch in Mumbai. The branch will be able to accept deposits and use its balance sheet to provide financing to clients, complementing the capabilities of Credit Suisse’s non-bank financial company in India, the Zurich-based bank said in an e-mailed statement.

The licence will also allow it to deal in government bonds, domestic fixed-income products and foreign exchange.
“This is a key pillar of our Asia-Pacific strategy of developing our onshore presence in major markets throughout the region,” Kai Nargolwala, chief executive officer of Credit Suisse Asia Pacific said.

“We believe that having a local banking presence will enable us to build stronger relationships with our clients and meet more of their needs.”   

“Credit Suisse views India as a key strategic growth market for the bank globally,” Nargolwala stated.

“We will be able to provide a much broader range of solutions to our domestic and international clients, facilitating the flow of capital and investment into India,” Mihir Doshi, chief executive officer for India, stated.

Credit Suisse already has a merchant banking licence for investment banking activities and a portfolio management licence for its wealth management business from the Securities and Exchange Board of India.

It also has a broker dealer licence in the Bombay Stock Exchange and National Stock Exchange. The Securities and Exchange Board of India had suspended Credit Suisse’s local broking license in April, 2001, saying the firm breached securities rules. The company resumed brokerage operations in the country in 2007.

The bank has steadily built up its presence in the country.
It bought a non-banking financial company in 2008 and renamed it Credit Suisse Finance (India) Pvt Ltd to provide asset-backed and securities-backed financing to corporate and individual clients. It made a $203 million capital infusion to it in January 2009.

The bank is also active in private equity in India, investing around $240 million through different funds.

It currently employs 170 people in its wealth management, investment banking and asset management businesses, with its investment banking team having doubled since 2007. It plans to continue to invest in human capital and infrastructure in the country.

Credit Suisse also has two centres of excellence in Pune and Mumbai employing almost 3,600 staff, providing IT, operations, financial accounting and human resources services to its businesses globally.

Earlier this month, Australia & New Zealand Banking Group Ltd had announced that it had received in-principle approval for a foreign bank licence in India. Also, Goldman Sachs Group Inc said last week it applied for a commercial banking licence.