JP Morgan Chase is planning to enter the private banking space in India within one year. Kalpana Morparia, former ICICI Bank honcho who recently took over as the chief of JP Morgan India told Dow Jones Newswires as per this report.
She also said that JP Morgan Chase, the second largest US bank, is also keen on the retail banking business in the country. But it cannot float operations as Indian central bank RBI has been very restrictive in giving licences to foreign banks to expand branches in the country. JP Morgan currently has only one registered branch in Mumbai. It has applied to RBI for four branch licenses and is awaiting approval.
JP Morgan India’s chief also said the US bank will initially aim at corporate clients through the branches before expanding into the retail segment.
JP Morgan, which recently hired six Bank of America employees for its India operations including Kaku Nakhate as the vice-chairperson of India business, currently offers investment banking, fund management and capital market products in India.
It also acts as a custodial bank to foreign institutional investors and also manages an Asia Infrastructure Fund with a corpus of around $750 million, which invests in infrastructure projects across the region. It is not present in cards, retail financial services and mid-market commercial banking.
The bank expects investment banking to be the largest contributor to the firm’s growth in India, contributing nearly 80% to total revenue. In the institutional market, JP Morgan’s market share has gone up to nearly from 5% a year ago to around 9%, claimed Morparia.