BRANCH BANKING | Roxanne Uy, Malaysia

What could be the implications of CIMB withholding buying RBS India assets?

Reports say that unexpected legal hurdles hindered CIMB from acquiring RBS India assets.

But Group Chief Executive Nazir Razak said CIMB remains committed to having an Indian component to the Asia Pacific investment banking platform.

ABF: What could be the implications of this delay to CIMB's plan for an investment banking platform in India?

Maybank Kim Eng: Desmond Ch'ng, Director, Equity Markets (Research)
This is but a slight hiccup to CIMB's overseas expansion plans. CIMB's foothold is in the ASEAN region and there is still much growth potential to be capitalized on here. The platform in India would have been complementary but synergies would have taken a while to realize, in our view. For CIMB, there is still the expansion into the new markets of Australia and Taiwan to look forward to from the RBS acquisitions.

Fitch Ratings: Mark Young, Managing Director, Head Asian Pacific Financial Institutions
For CIMB there would appear to be limited implication, in view of the healthy investment banking prospect in South-East Asia, which is likely to remain the core region for CIMB Group in the medium term.

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