BoA sees India growth opportunities from Merrill Lynch buy

NEW DELHI: Bank of America today said that its 50-billion dollar acquisition of Merrill Lynch would provide it with significant growth opportunities in India.

In an investor presentation webcast to discuss the deal, Bank of America Chairman and CEO Ken Lewis and Merrill Lynch chief John Thian said Merrill Lynch has been focusing on growth in India and the deal would result in "significant growth opportunities" in wealth management and investments businesses in the country.

Merrill Lynch has been the market leader in India with full local capabilities and there has been a significant expansion since increasing stake in DSP Merrill Lynch, the Indian entity, to 90 per cent, they said.

While Merrill Lynch has a notable presence in India, particularly in mutual fund and investment banking segments, BofA has also invested in the country as an emerging market. Bank of America has five branches in India -- Mumbai, Delhi, Kolkata, Chennai and Bangalore.



Bank of America has said its Indian banking operations have consistently delivering superior returns year after year. Its revenue in its Indian operations rose 30 per cent to Rs 861.7 crore and profit after tax rose 56 per cent to Rs 305.2 crore for the year ended March 31, 2008.

In October 2007, Bank of America made a capital injection of Rs 328.2 crore into its India operations, boosting the bank's capital base and strengthening its capital adequacy ratio.

It also owns a subsidiary in India called Banc of America Securities India Pvt Ltd, which is engaged in underwriting, dealing and trading of corporate fixed income securities and related capital market activities.