The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.
Banking

India: Waiting game continues for foreign investment banks

Even in a bullish scenario where a Rajan-Modi dream team unleashes reforms – from PSL to the bond market – in an economic super-cycle that sees public lenders recapitalized, foreign investment banks could still be chasing rainbows in India. It is an over-banked market, with dozens of fee-hungry institutions jockeying for business.

In 2013, investment-banking revenue, for DCM, M&A and ECM, was a mere $397 million. ECM posted a paltry $58 million, compared with a total $758 million for 2010, though that was still relatively modest given India’s $2.1 trillion GDP. In fact, India represented just 6.9% of the non-Japan emerging Asia fee pool in 2013, compared with 55% for China and 7.2% for tiny Singapore.

Though there has been a spirited rebound in deal-flow since the elections – investment banks posted $252 million of revenue year-to-end-August – bankers are under no illusions about the state of the intensely competitive landscape, even as the likes of Barclays, RBS and Morgan Stanley have retrenched in recent years.

Citi, which posted 6.6% market share, second to Axis Bank with 7%, last year, is one of the few houses to have maintained a relatively stable franchise. Ravi Kapoor, head of corporate and investment banking, Citi India, says: “There are about 40 foreign and domestic investment banks competing for business, so it is an over-banked market, where the volumes, deal-sizes and margins are modest compared to other regions.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree