Commonwealth Bank of Australia to exit India market
Commonwealth Bank (CBA), the largest lender in Australia, has announced plans to exit the Indian market following poor results.
CBA operates in India from a sole branch in the city of Mumbai. The branch, opened in 2010, has been offering trade finance, remittance and foreign exchange to organisations that trade between Australia and India.
“After careful evaluation of our Indian business alongside our refocused strategy, the decision has been made to wind-down and close the Mumbai branch,” the bank said.
The bank said that in the interim, customers can make withdrawals and fund transfers, though the branch will not accept new term deposits or open new accounts.
CBA India is part of the banking group’s International Financial Services (IFS) unit. Cash profit at the bank’s IFS and other segment slumped 21% to A$26m for the year to 30 June 2016 compared to the prior year.
The move by CBA follows similar moves announced by other major banks. In November 2015, HSBC Holdings unveiled plans to shut down its Indian private banking arm, while RBS agreed to sell its private banking business in India to Sanctum Wealth Management in September 2015.