Japan's Sumitomo Mitsui Financial Group (8316.T) will consider launching retail banking operations in China, Thailand and India through tie-ups with local partners as it seeks to expand in Asia, its president said.
It would be time-consuming to start retail banking operations from scratch on our own. It would be more efficient and effective to enter by tying up with local banks, either through equity stakes or not.
On Wednesday, SMFG's core banking unit, Sumitomo Mitsui Banking Corp, announced that it had agreed to buy a 4.5 percent stake in Indian lender Kotak Mahindra Bank (KTKM.BO) for $296 million.
India has high growth potential and we have determined we need to make a deeper commitment in the market. So far, SMFG and rival Japanese banks' overseas operations have mostly catered to Japanese companies doing business abroad, but they are now trying to reach out to local customers by tying up with local banks.
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