ANZ poised to launch into fast-growing Indian market

The licence would open a new front to the ambitious Asian expansion headed by the ANZ chief executive, Mike Smith. The bank has been waiting more than a year for approval to enter the fast-growing Indian market.

An unnamed official with India's Ministry of Finance was quoted by India's Economic Times as saying the Reserve Bank of India had given its approval to the ANZ application for a banking licence. The final decision on the matter now sits with India's Finance Minister.

Several Indian government departments, including the Ministry of External Affairs, the Ministry of Home Affairs and the Department of Commerce, had already given their blessing for ANZ to open a Mumbai branch, the report said.

Last year, ANZ took part in talks regarding the 30 Royal Bank of Scotland branches in India but the branches were sold to HSBC.

ANZ has a mixed history in the Indian market through its previous ownership of Grindlays, which it sold to Standard Chartered in 2000. Grindlays later became involved in a long-running legal action after being caught up in a fraudulent cheque scam. ANZ was eventually hit with more than $280 million in losses as a result of the action.

ANZ owns a technology services business in Bangalore, which provides back office support for the bank's Australian and New Zealand operations. In India, like other parts of Asia, ANZ is hoping to sell retail banking services to the nation's booming middle class.