Commonwealth Bank of Australia (CBA) has become the 1st bank to start functioning in India. The bank would concentrate chiefly in areas such as trade finance, remittances and foreign exchange services.
Simon Blair, group executive, international financial services of CBA said, “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”.
By Australian links, he was talking about the 4,00,000 Indian population living in Australia. They are the bank’s targets for remittance business.
ANZ Bank, its competitor has also asked for banking license in India. ANZ had to quit from India due to its implication in the Harshad Mehta Scam.
Ravi Kushan, CEO said, “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”.
Slowly the bank might also consider venturing into retail segment and also participate in the financial inclusion program in India.