Goldman Sachs ramps up credit business in India, targets rich diaspora

Goldman Sachs Intensifies Credit Expansion in India, Eyes Affluent Diaspora

Goldman Sachs Group Inc. is set to bolster its credit operations in India, seizing the burgeoning opportunity presented by the nation's affluent diaspora amid a global shift of investor focus toward the world's fastest-growing major economy.

Sonjoy Chatterjee, chairman and CEO of Goldman in India, revealed the investment bank's strategic plans to widen the scope of loans offered through its shadow banking arm.

In an interview, he also disclosed the firm's intentions to secure licensing for amplified currency trading capabilities, enabling interactions with various counterparties including financial investors, equity clients, and corporate entities.

Enhancing Market Presence

Goldman Sachs is positioning itself within India's thriving economy, estimated to grow by 7% in the fiscal year ending March. With its largest overseas office already established in India, housing a diverse workforce from quantitative analysts to software engineers, the New York-based firm currently leads the league table for India deals based on Bloomberg data.

A Shift in Investor Flows

Chatterjee noted the shift of emerging market equity flows from China to India, recognizing the enduring significance of the Chinese market while emphasizing the growing traction India has experienced.

Strategic Credit Initiatives

Goldman's plans involve expanding its credit offerings through the non-banking financial company (NBFC) sector, complementing an existing private credit fund operated by the firm within India.

The focus lies on origination and syndication, with Goldman retaining a residual portion of the loans facilitated through the NBFC.

Seizing Wealth Management Opportunities

The pandemic has led to a diaspora of Indian entrepreneurs seeking opportunities abroad. Chatterjee highlighted the augmented potential in catering to such clients through Goldman's offices in key global financial hubs like Singapore, London, and Dubai.

Projections for Private Equity and Investments

Anticipating substantial capital deployment by private equity firms in India, Chatterjee predicted a surge in deal-making activities in the country. He emphasized India's appeal as the primary destination for sizable Asia-focused funds, attributing it to the hunger among private capital firms to invest significantly.