Commonwealth Bank of Australia (CBA) has started its full-fledged operations in India with a focus of trade finance, remittances and foreign exchange services, among others.
“We have chosen India as one of our preferred growth markets along with China, Indonesia and Vietnam. We are increasingly looking at emerging markets. But links to Australia are important for us,” said Simon Blair, group executive — international financial services of CBA, in an interaction with the media.
The links include the 400,000 Indian Diaspora in Australia, which the bank is eyeing for the remittances business. Mr Blair said 52% of remittances to India from Australia are handled by his bank. From CBA’s perspective, India is Australia’s fourth-largest export market and so far it is the only Australian bank to operate in the country. Australian banks have started looking outward to Asia as opportunities back home diminish.
CBA is the first Australian bank in the country to start full-fledged banking operations. Its rival, ANZ Bank, has also applied for a licence with RBI. CBA, which was privatised in 1991, figures among the top 21 banks in the world, with 80% of its profits coming from home country operations.
The bank started its operations in the country way back in 2004 with a rep office in Bangalore offering trade finance services to clients doing business with Australia. The bank launched its full-fledged operations only in the current year with a staff strength of 28 headed by CEO Ravi Kushan.
“We are starting to work with Indian companies which are looking at investments in Australia. Moreover as 52% of people of Indian origin in Australia bank with us, we see a lot of opportunities in the area of remittances and NRI banking services,” said Mr Kushan.
The bank may also consider expanding to retail and eventually participate in the financial inclusion space, depending on how the relevant regulations pan out, which are currently in the preliminary stages of discussions.
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