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Deutsche Bank bets on India, to expand private banking |
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Saturday, 21 October 2006 |
German major Deutsche Bank expects India’s growth potential to exceed China's growth by 2020. Explaining the bank’s strategy in one of his recent presentations to start private banking business in India , Josef Ackermann, chief executive officer, Deutsche Bank, said, “Although GDP per capita growth is likely to be higher in China at 4.4% per annum, than India’s 3.9% per annum, the demographics are more favourable in India, where the dependency ratio will fall until 2020. Thus, the overall GDP growth in India will be 5.5%, which would be higher than China’s 5.2%.”
Further, he stated the bank plans to expand its private banking business in India as the start of the business has been very promising. Deutsche Bank has opened eight branches in the private banking space and has employed nearly 500 employees, he added.
Deutsche Bank research report states that the bank has noticed huge improvements in the quality of workforce, which is one of the country’s major growth driver. Also, the research says that per capita consumption of many necessities are still low in India as compared to other developed and developing countries and hence huge market potential could be seen. Moreover, upward rising investments have become a driver of growth, also India’s attractiveness for foreign investors is increasing.
On the concerns, the report says that twin deficits and high public debt needs to be monitored. Huge investment needs especially in infrastructure is one of challenges faced by the country.
The report also mentions about increasing India’s dependence on US as one of the concern. Despite of these concerns due to the favourable factors bank expects India to grow.
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Last Updated ( Saturday, 21 October 2006 )
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