Credit Agricole CIB Opens Office in Mumbai to Tap Debt MarketReliance Capitaland ICICI Bank in Race to Acquire Credit Agricole's Brokering Firm

Mumbai, India (PressExposure) June 28, 2011 -- In a move to tap business potential of India, Credit Agricole Corporate & opened its office in Mumbai, India. This will be second office of he subsidiary of Credit Agricole of France (formerly, Calyon) in Asia after Hong Kong.

Debt and credit markets (DCM) division will serve both the onshore and offshore markets. Credit Agricole CIB spokesperson said, "DCM is a key business development priority for us in Asia, a strategic region for Credit Agricole CIB. India is a key country in our Asian setup."

As investment limit for FIIs in bonds has been increased by USD 5 billion to USD 20 billion in September by Government of India, the Credit Agricole thinks that DCM is well timed in Indian Context.

ManeeshKetkar will head the DCM division in India, the Bank is in operating in India since 1981. The bank, formerly known as Clayon, has reasonable presence in corporate and financial space.

"Our new DCM capability is also allowed us to provide further support to our India clients both locally and overseas as they grow internationally," the bank said.

Anil Ambani Group firm Reliance Capital and the leading private sector bank, ICICI Bank is looking at France based third biggest bank Credit Agricole's two broking franchises. The total value of both franchises together is around US$3.5 billion.

According to French paper La Tribune, a deal would be likely if Credit Agricole's partnership talks with Citic Securities, China's largest securities firm by market cap, fails. In May last year, two had signed MoU to merge their equity business and in December they extended the deadline for exclusive talks for a 50:50 joint venture to June 30 from December 31.

However, Credit Agricole and Citic both maintained that talks were progressing well but the two sides are yet to reach an agreement. Both ICICI Bank and Reliance Capital spokespersons said, "We do not comment on speculative reports."

Reliance Capital Limited (RCL) was incorporated in year 1986 at Ahmedabad in Gujarat as Reliance Capital & Finance Trust Limited. The name RCL came into effect from January 5, 1995. In 2002, RCL shifted its registered office to Jamnagar in Gujarat before it finally moved to Mumbai in Maharashtra, in 2006.

In 2006, Reliance Capital Ventures Limited merged with RCL and with this merger the shareholder base of RCL rose from 0.15 million shareholders to 1.3 million.

RCL entered the Capital Market with a maiden public issue in 1990 and in subsequent years further tapped the capital market through rights issue and public issues. The equity shares were initially listed on the Ahmedabad Stock Exchange and The Stock Exchange Mumbai. Presently the shares are listed on The Stock Exchange Mumbai and the National Stock Exchange of India.

RCL in the initial years engaged itself in steady annuity yielding businesses such as leasing, bill discounting, and inter-corporate deposits. Later, in 1993 diversified its business in the areas of portfolio investment, lending against securities, custodial services, money market operations, project finance advisory services, and investment banking.

RCL was accredited a Category 1 Merchant banker by the Securities Exchange Board of India (SEBI). It had lead managed/co-managed 15 issues of an aggregate value of Rs. 400 crore and had underwritten 33 issues for an aggregate value of Rs. 550 crore. All these companies were listed on various exchanges.

RCL obtained its registration as a Non-banking Finance Company (NBFC) in December 1998. In view of the regulatory requirements RCL surrendered its Merchant Banking License.

RCL has since diversified its activities in the areas of asset management and mutual fund; life and general insurance; consumer finance and industrial finance; stock broking; depository services; private equity and proprietary investments; exchanges, asset reconstruction; distribution of financial products and other activities in financial services.



About RCom

Reliance - ADA Group's flagship company, Reliance Communications, is India's largest private sector information and communications company, with over 100 million subscribers. It has established a pan-India, high-capacity, integrated (wireless and wireline), convergent (voice, data and video) digital network, to offer services spanning the entire infocomm value chain.

Other major group companies - Reliance Capital and Reliance Infrastructure - are widely acknowledged as the market leaders in their respective areas of operation.

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Press Release Submitted On: June 28, 2011 at 6:22 am
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