Reportedly, Goldman Sachs already has a licence to conduct asset management business in India. At present, the New York-based investment bank offers investment banking, global investment research, operations and technology services in India.
In April 2009, RBI, in its annual monetary policy, put on hold plans for liberalising operations of foreign banks. RBI said: “The proposed review will be taken up after due consultations with the stakeholders once there is greater clarity regarding stability, recovery of the global financial system, and a shared understanding on the regulatory and supervisory architecture around the world.”
Brooks Entwistle, CEO and managing director of Goldman Sachs for India said: “We have applied for a commercial bank licence. Our file is in now. We understand that the process is a long one. We are committed to, when that process comes through, if it does, to continue our business in the appropriate way. But the important thing is to set up a business. We intend to launch the (AMC) business at some point in the near future.”
Regarding plans to launch an asset management firm over the next one year, Mr Entwistle said: “We had this plan of launching an asset management company for a long time but were not able to execute it. We intend to launch our management business in the next 12 months and we have already obtained the licence for it.”
About Goldman Sachs’ investment plans in India, he said: “In terms of investment, we have invested $2bn in India till now. We have invested in 44 companies since we have arrived and are much focused on the Indian consumers. We are also trying to get more companies to invest in India.”
According to RBI website, at end-June 2008, 30 foreign banks from 21 countries were operating in India with 279 branches. In addition, 41 foreign banks operated in India through representative offices.
During the period from July 2007 to June 2008, approvals were given to 3 existing foreign banks to open 18 branches and to 11 foreign banks to open representative offices in India.
