Source: BS
Context:
Japan’s Sumitomo Mitsui Banking Corporation (SMBC) has received in-principle approval from the Reserve Bank of India (RBI) to establish a wholly owned subsidiary (WOS) in India. The approval allows SMBC to convert its existing branch-based operations into a locally incorporated subsidiary, the RBI said in a statement.
What does the approval mean?
- SMBC will transition from a branch model to a wholly owned subsidiary structure
- The subsidiary will be incorporated under Indian law
- This gives the bank:
- Greater operational flexibility
- Ability to expand its business footprint
- Scope to undertake activities with local capital and governance
Current SMBC presence in India
SMBC currently operates through:
- Branches in New Delhi, Mumbai, Chennai and Bengaluru
- One branch at the GIFT City International Financial Services Centre (IFSC) in Gujarat
These branches will be converted into the WOS once final approvals are granted.
