Moving into South Asia! Taipei Fubon Bank Received Approval from the Financial Supervisory Commission to Open a Branch in Mumbai, India
The Bank's First South Asia Branch, Complete Global Operation Layout & Help Taiwanese Businessmen Grasp Supply Chain Business Opportunities
In recent years, bilateral trade and mutual investment between Taiwan and India have been on the rise. Driven by trends such as the shift in the international supply chain and the expansion of the local domestic demand market, many Taiwanese enterprises have increased their investment in India which has made India the focus of the most attention among the New Southbound countries. Focusing on the development potential of India, Taipei Fubon Bank was approved by the Financial Supervisory Commission (FSC) to apply for the establishment of a branch in Mumbai, India which will become the first overseas location of Taipei Fubon Bank in South Asia.
The application for the establishment of the Mumbai branch in India will not only complete the bank's global business network and expand the deployment of overseas assets but will also help to improve the quality of its international financial services which is an important indicator for the bank's business development in the Asia-Pacific region. The bank also looks forward to providing more comprehensive and high-quality financial services to customers on both sides through our Mumbai branch in India in the future to help Taiwanese enterprises grasp the business opportunities in supply chain transfer which will be a new impetus for the economic and trade cooperation between the two sides.
India is one of the key target countries of our "New Southbound Policy", with an economies of scale of US$3.47 trillion by 2022, surpassing the United Kingdom to become the world's 5th largest economy. The Reserve Bank of India estimates that its GDP growth rate will be 6% in 2023, and if it can maintain steady growth, it is expected to surpass Japan to become the world's 3rd largest economy by 2030. In addition, India's population has reached 1.43 billion in 2023, surpassing China to become the world's most populous country, with huge potential for domestic consumption and abundant labor force, making it an overseas market with both domestic and external demand, economic growth trend, and a strategically important position. Under the influence of the international trend of supply chain decentralization, India has become an emerging production base for Taiwanese and international manufacturers in the next phase of consolidation and supply chain shift by virtue of its abundant labor force and high-end technological talents, low production costs, and the government's continuous efforts to improve the business environment.
The scale of offshore fundraising by Indian corporations continues to grow, and domestic banks' lending to the Indian market has increased by NT$106.3 billion in 2023, which is the highest among the New Southbound countries. At the same time, India's corporate profit growth is at the forefront of Asia, and large corporations in the country have raised sufficient and stable capital for business expansion, resulting in a good overall market rate of return. International credit rating agencies Fitch Ratings, Standard & Poor's, and Moody's have also given India a "stable" outlook, which is one of the few markets with a high rate of return and manageable risks, and the potential for development is promising.
To meet the multiple financial needs of Taiwanese businessmen in supply chain development, local business development in India, and international syndicated loan, Taipei Fubon Bank has chosen to open a new branch in Mumbai, the largest city in India, after careful assessment. Upon its establishment, the branch will not only provide professional financing to meet the financial needs of enterprises on both sides of the border, but will also play an active role as a financial bridge for the cooperation and interaction between the two regions, supporting the business development of Taiwanese businessmen and high-quality local enterprises in the region, as well as integrating Fubon's rich financial resources in the Asia-Pacific region to provide enterprises with more comprehensive financial services.
Last year, Taipei Fubon Bank co-organized and hosted a five-year US$1 billion syndicated loan for the State Bank of India which was the first social loan by the State Bank of India to meet APLMA specifications. In addition to promoting the development and implementation of corporate social responsibility, this was also the largest amount of money ever borrowed by a bank as a borrower and with a Taiwanese bank as the managing bank in the international syndicated loan market which is highly indicative of the international visibility of Taipei Fubon Bank. As a leader in sustainable finance in Taiwan, Taipei Fubon Bank will continue to exert its positive influence and extend its sustainable finance reach to the South Asian region through its Mumbai branch in India and joins hands with corporations to promote sustainable development globally.
With the vision of "becoming a first-class financial institution in Asia", Taipei Fubon Bank has been actively expanding its global presence, and currently has service locations in Taiwan, Hong Kong, China, Vietnam, Singapore, Indonesia, and Australia. In the future, after the establishment of its branch in Mumbai, India, Taipei Fubon Bank will adhere to the concept of sustainable management, and will endeavor to give full play to the benefits of inter-regional connectivity to expand its international financing business and strengthen the development of business opportunities in the Asia-Pacific region so that Taipei Fubon Bank can be the first choice of international financial partners for corporations.