Goldman Sachs expands credit business in India: Here's why
What's the story
Goldman Sachs is gearing up to broaden its credit business in India, reported Bloomberg. It aims to target the nation's affluent diaspora as global investors shift their attention from China to the world's fastest-growing major economy. Sonjoy Chatterjee, Chairman and CEO of Goldman Sachs in India, disclosed plans to expand the variety of loans provided through its shadow banking unit, and acquire a license for increased currency trading operations.
Details
Credit expansion and wealth management
Chatterjee stated that the credit expansion via Goldman's non-banking financial company (NBFC) will complement the private credit fund that the firm currently manages on its own balance sheet in India. He mentioned, "This will be more of what we might want to originate and syndicate, keeping only a residual portion." Furthermore, the pandemic has prompted numerous Indian entrepreneurs to relocate overseas, generating a "more prominent" opportunity for wealth management services from offices in Singapore, London, and Dubai.
What Next?
Private equity firms eyeing India
Chatterjee also noted that private equity firms are eager to invest a substantial portion of the capital they have amassed for Asia funds in India, which is expected to drive future dealmaking in the country. He said, "Private capital continues to remain very hungry to invest. When you have a large Asia fund of $8-10 billion, India is the most obvious destination." This development comes as India's economy is projected to grow 7% in the year ending March.