As cash-rich Indian companies ramp up overseas M&A activity, global banks ignore difficulties and re-staff India.

Decline in deals but the outlook is bright

Current domestic downers - inflation at 12.63% (21/8/08) and oil costs - have an affect. Dealogic report a first six months year-on-year deals decline of 27%, to US$ 28.6 billion. Equity offerings flopped 37% to US$ 11.2 billion.

But big banking is unbothered. Chief Executive, of Credit Suisse Asia Pacific, bullish Kai Nargolwala, concludes, "While there will be some slowdown in growth, we don't see it as anywhere near as severe as one might see in the US and Europe." McKinsey & Co believe the outlook "relatively bright" with strong Indian growth irrespective the state of global capital markets.

India Inc acquisitions to surpass sales

Recent research agrees. Since 2003 Indian firms made 322 foreign acquisitions, and 340 Indian firms were sold to foreign entrants. But, accountants KPMG conclude India will be a net 'deal exporter'. Ian Gomes, Chairman of KPMG's new and emerging markets practice, expects buys to overtake sells.

Boots to the ground in anticipation

Credit Suisse plan to double investment banking, private banking and asset management staff.

In May RBS moved three bankers from recently acquired ABN AMRO to key roles in its Mumbai based corporate finance team.

Japanese brokers, keen to grow outside their stagnant Mikado market, look to India. Nomura plan to increase staff from 17 to 100 by 2010 - adding stock trading and asset management to its portfolio. In April 2008 Daiwa and Sumitomo's already established JV, "Daiwa SMBC" began operations as the first Japanese broker with a full line-up of services in India.

Mitsubishi UFJ Securities set up a subsidiary in Mumbai while Mizuho Securities signed a memorandum of understanding with Tata Capital to jointly launch a private equity fund and offer wealth management services.

Domestic banks look overseas

Domestic banks look for a piece of the international action. Union Bank of India plan 10 international offices to service Indian companies acquiring foreign rivals.

Chairman and Managing Director Mavila Nair explains, "Many customers are operating in the global market, they are acquiring companies ... We will support their aspirations across the globe".

There's a nice banker.