Bucking the trend: JP Morgan, biggest US lender, to expand in India

New Delhi:  JP Morgan Chase, the largest bank in United States by assets, is expanding in India with three new branches when most of the foreign lenders are shutting shop amid a global economic slowdown.

The Reserve Bank of India has allowed the lender to open three large branches in Delhi, Bangalore and Chennai in addition to its existing branch in Mumbai, two people familiar with the matter told ET.

The bank did not respond to ET's email seeking comments while the central bank declined to comment on matters relating to individual banks. Through these three new branches JP Morgan Chase would offer corporate banking services such as loans and transaction banking facilities. RBI has mandated the bank to open branches before March 31 next year.

Two months ago, the bank elevated Kalpana Morparia, its India head, to the rank of South and South-East Asia head - a move seen as an increasing importance for its India business.

The bank, according to Bloomberg data, had a net India credit exposure of $12.10 billion as on December 31, 2015. That exposure included financial institutions and corporate credit as well as sovereign securities like government bonds.

"Increasing its India footprint, especially when other peers are winding up, itself indicates how the global bank is prioritising its India business. The lender aims to have higher share of corporate lending now," said a senior executive from a large consultancy firm.

JPMorgan Chase posted first-quarter profit that beat Wall Street estimates as the firm slashed bankers' pay, and trading revenue declined less than most analysts predicted, Bloomberg reported in April.

Net income fell 6.7 per cent to $5.52 billion, or $1.35 a share, from $5.91 billion, or $1.45, a year earlier, the New York-based company said Wednesday in a statement. On an adjusted basis, per-share earnings were $1.41, beating the $1.25 average estimate of 29 analysts surveyed by Bloomberg.

"While challenging markets impacted the industry, we maintained our leadership positions and market share," Chief Executive Officer Jamie Dimon said in the statement. "Even in a challenging environment, clients continue to turn to us in the global markets."

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.