FirstRand Bank has decided to shut down its retail and SME lending divisions in India. The South African bank does plan to keep its corporate lending and investment businesses running for the mean time. FirstRand launched in India at the start of 2012, three years after its corporate and investment divisions ha set up shop in the country.
The bank faced losses across six years of operations in India, and switched its focus to SME lending to stem some of the fallout. It seems that strategy has not paid off, however. “Our decision is in line with our strategy to streamline our business in India and further strengthen our successful initiatives, namely, corporate and investment banking, Indo-Africa corridor trade and micro lending,” says Rohit Wahi, CEO for India at FirstRand Bank.
FirstRand Bank’s main revenue stream are its home businesses in South Africa, which makes up 86% of the total. Its other markets, including the UK and India, only account for 4%.
FirstRand Bank to close Indian retail operations
