News24
22 Apr 2021, 00:13 GMT+10
FirstRand has said it's scaling back its presence in India by converting its branch to a representative office, but won't wind down its operations in the country.
Africa's biggest bank by market value undertook a review of its strategy in India and "remains committed to its presence" there, according to a statement on Wednesday. The Economic Times, which earlier reported the move, said it's likely to impact at least 50 jobs in India.
"Whilst it has proved difficult to build a meaningful in-country franchise, the Indian business has successfully focused on facilitating trade and investment activity in the Indo-Africa corridor," the Johannesburg-based lender said. "This has been a key enabler to FirstRand's investment banking business's strategy to grow its offerings on the broader African continent, but which only requires a representative office to execute."
The announcement follows days after Citigroup unveiled a plan to exit its retail business in India and China, underscoring the frustrating battle for market share international banks face in two of Asia's largest economies. Increased rivalry from domestic lenders, especially in consumer financing, and fierce competition for top talent contributed to the challenges that overseas banks have often struggled to overcome.
FirstRand, which has operations across Africa and a representative office in Shanghai, already reduced its consumer banking in India almost five years ago. The lender delivered a sign of confidence last month by declaring an interim dividend after withholding its final payout last year while Africa battled the worst of the coronavirus pandemic.
Get a daily dose of Cincinnati Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Cincinnati Sun.
More InformationBRUSSELS, Belgium: Meta is holding firm on its controversial pay-or-consent model, a move that could lead to fresh antitrust charges...
LONDON, U.K.: American consumers and businesses could soon face the highest overall tariff burden in more than a century, according...
The family of Sayfollah Saif Musallet, a 20-year-old American citizen who was beaten to death by Israeli settlers in the occupied West...
CONCORD, New Hampshire: A federal judge in New Hampshire issued a crucial ruling on July 10 against President Donald Trump's executive...
DUBAI, U.A.E.: A cargo ship flagged under Liberia, known as the Eternity C, sank in the Red Sea following an attack executed by Yemen's...
WASHINGTON, D.C.: The Trump administration has started sending some weapons to Ukraine again, just a week after the Pentagon told officials...
NEW YORK CITY, New York: Bitcoin surged to a new all-time high this week, buoyed by growing institutional interest and a wave of pro-crypto...
SHENZHEN, China: As global chip competition intensifies, Huawei Technologies is exploring new markets in the Middle East and Southeast...
LONDON/NEW YORK CITY: American grocery bills may be headed higher as coffee and orange juice prices face upward pressure from new tariffs...
BATTLE CREEK, Michigan: In a major consolidation of iconic food brands, WK Kellogg has agreed to be acquired by the owner of Ferrero...
WASHINGTON, D.C.: Filmmaker Peter Jackson's lifelong fascination with the extinct giant New Zealand flightless bird called the moa...
NEW DELHI, India: India has submitted a revised proposal to the World Trade Organization (WTO) in Geneva to implement retaliatory tariffs...