Barclays looking for ‘right fit’ to buy in India

Barclays Global Retail Banking (GRB), which handles the retail banking operations of the global financial giant, is actively looking at inorganic growth opportunities to expand its footprint in India.

Though the bank is yet to identify a specific target for acquisition, it would wait for a right target which fits the bill at an appropriate price. “We are open to such opportunities and the buy should fit in our business model and should be with right price too,” Ram Gopal, interim managing director - India, Barclays GRB said.

Though Barclays GRB started its India operations in 2006, it has not been able to expand its footprint aggressively.  So far it has set up seven branches including one in Hyderabad on Wednesday. The other branches are in Mumbai, Delhi, Junagarh, Kanchipuram, Nelamangala and Ahmednagar in Maharashtra. The branch expansion has been at the rate of two branches per annum.  He said the bank wishes to broaden its footprint despite some limitations of being a foreign bank.

“Our branch expansion is linked to the approvals we get from the RBI. It is a fact that we are currently located in more tier-III cities. The RBI seems to be focusing more on financial inclusion while allowing institutions like ours,” he said. “We wish we had permission to open 700 branches and not just seven. But, it all depends on the RBI’s approvals,” he said.

The bank, in the last financial year, registered a balance sheet size of about £1 billion in the form of advances. “Our portfolio mostly had unsecured loans, which were about 80% and the secured loans were just 20%. But, in the next 2-3 years, we are planning to take it to 60% secured and the balance unsecured,” Ram Gopal said.

Barclays is working on a strategy to tap the potential in the “mass-affluent” category and according to the bank officials, it would  look at people with an income of  Rs 30,000 and above as potential customers. 

However, the bank for now is looking at expanding its business in the Indian market through alternate channels than direct presence through branches.  The bank has about nine lakh customers and 2,300 commercial customers.