Sumitomo Mitsui Financial Group said it has agreed to buy a 4.5 per cent stake in Kotak Mahindra Bank for $296 million, as Japan's No 3 bank stepsTop 5 stock picks up efforts to expand its overseas operations.SMFG and other major Japanese banks are seeking partnerships with local banks in Asian countries as growth prospects at home are weak, hoping this will expand their overseas customer base beyond Japanese clients working abroad.
SMFG has tie-ups with local banks in Hong Kong, South Korea, Indonesia and other Asian markets, including a 15 percent stake in Vietnam Export Import Bank.
It said it would acquire the stake in Kotak Mahindra through a private placement of new shares to be issued in August or September for about Rs 1370 crore ($296 million), pending approval by the Indian bank's shareholders and authorities.
SMFG plans to team up with Kotak Mahindra in asset management, stock brokerage and investment banking operations, it said in a statement.
Last week, Dutch financial services group ING sold its entire 3.1 percent stake in Kotak Mahindra Bank for $175 million.
Many foreign banks are looking to build up their presence in India, which is on track for economic growth this year of more than 8 percent but also limits the participation of foreign lenders in the country.
Last week, Dutch lender Rabobank moved a step closer to setting up its own banking unit in India by cutting its stake in midsize local lender Yes Bank for about $213 million, to meet regulatory requirements.
Goldman Sachs has applied for a banking licence in the country, while Australia and New Zealand Banking Group is planning a return to India after a 10-year absence, and numerous foreign banks are building up their private banking operations in India.
UK lender Standard Chartered last month raised $530 million in the first ever issue of Indian depositary receipts (IDRs), a move that was less about raising capital than about boosting its profile in India.
(Source - Economic Times)
No comments:
Post a Comment