BankAm to lay stress on providing suite of services

Our Banking Bureau

Mumbai, Aug 24: WE believe in being a full-services player, and go were our clients’ needs take us," says Bank of America’s (BankAm) president-Asia, Colm McCarthy.

Mr McCarthy, while laying bare BankAm’s Asian business interests on Friday underscored the point that India figured prominently in its strategic outlook. The bank’s local operations contributes to nearly 17 per cent of its Asian business.

Elucidating further on being a bouquet-service provider, Mr McCarthy stated that capital being dear, it made sense to offer an entire suite of what is largely deemed fee-based: be it in debt placements or underwriting, hedges and swaps.

BankAm made headlines recently when it exited its equity-related activities on the investment banking front. Reacting to a query on BankAm’s reduced business foot-print, Mr McCarthy said that was part of a larger strategy. "This line of business contributed just about two per cent to our bottomline in Asia. In India, it was more. But we had to decide on what we wanted to be and chose to exit". He said that a like thinking also saw BankAm quit its retail operations in 1999 when it sold its book to ABN-Amro Bank.

Mr McCarthy, however, qualified that despite the fact that BankAm had exited for its equity-related operations in the country, it is open to playing an advisory role in the disinvestments in state-run entities. "We are making other investments in the country like a 100 per cent securities arm," Mr McCarthy noted to stress on the bank’s commitment to India.

BankAm’s managing director and country manager (India), Vishwavir Ahuja, said that the response from the bank’s clientele too was positive and that they looked forward to doing business with the bank.

Mr McCarthy also stated that the bank would consider the option of making India a back-office processing hub for its Asian operations, but catergorically denied that any such move is to be gone ahead with as of now even as he remarked that "recee trips" had been made.

BankAm has a 40-year presence and runs a five-branch operation in the country. It also has a proprietary equities arm -- BancAmerica Equity Partners. The bank has received approval to set up a 100 per cent subsidiary, BankAm Securities, capitalised at $50 million, which will be a primary dealer as well.