The Hindu : Business : BankAm sees India growth opportunities

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Tuesday, Sep 16, 2008
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BankAm sees India growth opportunities

NEW DELHI: Bank of America on Monday said that its $50-billion acquisition of Merrill Lynch would provide the bank with significant growth oppor- tunities in India.

In an investor presentation webcast to discuss the deal, Bank of America Chairman and CEO Ken Lewis and Merrill Lynch chief John Thian said Merrill Lynch had been focusing on growth in India and the deal would result in “significant growth opportunities” in wealth management and investments businesses in the country.

Merrill Lynch had been the market leader in India with full local capabilities and there had been a significant expansion since increasing the stake in DSP Merrill Lynch, the Indian entity, to 90 per cent, they said.

Notable presence

While Merrill Lynch has a notable presence in India, particularly in mutual fund and investment banking segments, Bank of America has also invested in the country as an emerging market. Bank of America has five branches in India — Mumbai, Delhi, Kolkata, Chennai and Bangalore. Bank of America has said its Indian banking operations had consistently delivering superior returns year after year. Globally, the deal is expected to result into thousands of job cuts, but industry experts said that layoffs could be minimal in India as the two entities were mostly active in separate businesses in the country. — PTI

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