JPMorgan Chase & Co. is strengthening its corporate banking presence in India, focusing on sectors such as electric vehicles, data centers, and solar energy, as firms in these industries ramp up capital spending in the world’s fastest-growing major economy.
“As demand certainty improves, capex investments will begin,” Oliver Brinkmann, co-head of global corporate banking, Asia Pacific, at the US bank, said in a recent interview in Mumbai.
JPMorgan, which counts India and Japan as its two fastest-growing Asian markets in terms of revenue from corporate banking, expects no let-up in growth despite Washington doubling tariffs on many Indian imports to 50%. While the South Asian economy grew by its fastest pace in more than a year last quarter, economists are increasingly concerned the tariffs could severely hurt labor-intensive industries and momentum may fade.
“The geopolitical environment, including tariffs, is complicated but JPMorgan takes a long-term strategic view of its business in India,” according to Singapore-based Brinkmann. He said the bank’s local corporate banking has been growing its revenue by 30% year-on-year for the past two to three years and he expects a similar pace of growth in the next few years.
S&P Global Ratings said in a report in June that Indian companies are estimated to double capital expenditure to $800 billion to $850 billion over the next five years from the previous five-year period, as they chase growth opportunities.
“We are looking to expand our corporate banking presence in sustainable energy, technology, diversified industries and infrastructure,” said Brinkmann, adding that JPMorgan is increasing its domestic headcount to focus on these segments.
The bank’s client segments in India include mid-cap firms with revenue of between $300 million and $2 billion, and large-cap companies. The US firm, which caters to about 1,900 clients in the country, also has a team focused on startups and unicorns.
JPMorgan’s business in India spans the gamut of commercial and investment banking, payments and securities services. In addition, the firm’s corporate centers in Mumbai, Bengaluru and Hyderabad support its technology and business operations globally with more than 55,000 employees.
While the opportunities are significant for corporate banking in India, competition is intensifying, and some rival executives remain cautious about the outlook. Last month, a senior Indian executive of Bank of America Corp. said firms were holding back on big investment decisions pending clarity on domestic demand and the global trade outlook.
Meanwhile, Mitsubishi UFJ Financial Group Inc and Sumitomo Mitsui Financial Group have taken a big lead over US lenders in arranging Indian borrowers’ foreign currency loans between 2020 and 2024, according to Bloomberg-compiled data. So far this year, JPMorgan is ranked 18th in the league tables.
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