In a bid to capitalize on the growth potential in India, Mitsubishi UFJ Financial Group Inc., Japan's largest bank, is actively seeking further expansion after making significant investments in the country.
Hironori Kamezawa, the CEO of the bank, expressed confidence in India's economic growth, stating in a Bloomberg report, "For India, economic growth is not a challenge."
"It's a sure thing," he said.
Major international banks and private equity giants are increasingly entering the Indian market, attracted by the country's projected 7 per cent economic growth in the fiscal year ending March. As per the report, India has emerged as a success in the global capital markets, leading to a high demand for banking professionals, partly influenced by a declining sentiment towards China.
In the past few years, Japan's largest lender has been strengthening its operations in India. It inaugurated a branch in the Gujarat International Finance Tec-City, India's latest financial hub and a flagship initiative of Prime Minister Narendra Modi.
Additionally, the bank established a fund aimed at investing in middle- to late-stage Indian startups. It also acquired a stake in DMI Finance Private Limited, a fintech company based in India, in a move earlier this year.
Expressing interest for further engagement, Kamezawa mentioned that the country also serves as the location for the bank's back-office operations center.
In contrast to China, where the bank plans to be discerning in its operations due to several risks, Kamezawa highlighted the growing appeal of India.
“I think as an investment destination, India could attract the money that might want to avoid China,” he further added.