News: Italian bank starts rep office in India

(PTI 07/04/2006) Mumbai - World's oldest bank and amongst top five in Italy, Banca Monte dei Paschi di Siena (MPS) has stepped into India by opening a representative office here.

The bank would maintain a prudent approach in expanding its reach and presence in India, bank's Head International Affairs, Mr Primo Brioni said adding that the bank intended to advance 'step by step but steadily'.

"In the first phase we will open another representative office in New Delhi. Then in the second phase, which is few months' away from now, we will report to our board of directors with the inputs of the Indian market and getting a nod from them we will s tart retail and corporate banking in India, replicating our operations in China," Mr Brioni said.

Asked whether the opening up of the representative office was a step towards acquiring a bank in India, he said, "The bank's corporate strategy does not prevent acquiring stakes abroad if it promises opportunity. However, if we decide to go for acquiring stakes, we don't buy minority stake. It's always the majority stake".

"The year 2009 attracts us very much," Mr Brioni said making the bank's intention clearer. The Reserve Bank of India will review its banking policy in 2009 and is expected to take a call on whether foreign banks can grab more than five per cent stake in a bank. But, he was tight-lipped when asked what could be the size of investment for acquisition.