Think bankers in Europe have it bad with their bonus cap? Spare a thought for those in India. The government there is soon to make bankers sign an “integrity pact” in which they pledge to refrain from “unhealthy practices”.
The move was prompted by concerns that foreign banks in India are willing to charge low fees to gain access to work on privatising state-owned companies, boosting their positions on deal league tables.
The new requirement comes at a bad time for Indian bankers, who are already facing weak share-sale activity. Pramit Jhaveri, Citigroup’s India CEO, told Finance Asia this week that India was a difficult place to make money for institutions that are “one-dimensional”. “If you only have a capital markets practice, or if you are primarily an M&A firm, you have more ups and downs,” he said.
But as we mentioned yesterday, regulatory and market challenges haven’t stopped Malaysia bank CIMB from setting up shop in India.
Number one (Channel News Asia)
Chinese bank ICBC is the world’s biggest public company, ranking number one for the first time on the Forbes Global 2000 list.
China cuts (Fox Business)
But ICBC has laid off five to 10 people from its investment bank.
Bond deals (Finance Asia)
A growing pipeline of borrowers in Asia are meeting with investors and preparing to launch bond deals.
Earnings up (Sydney Morning Herald)
Bank of Queensland’s earnings have risen 16%.
Cheque problems (Straits Times)
A technical glitch felled Singapore’s cheque clearing system on Wednesday.