"We are waiting for some clarification from the Reserve Bank of India on which banks will be available for acquisition," GE India CEO and President Scot Bayman told Business Standard in New Delhi on Wednesday, adding: "In particular, we want to know what is a weak bank and how will such banks be identified. We have to see what is the maximum equity we can get within the existing framework of rules."
On March 2, David Nissen, CEO and President of GE Money, the consumer finance arm of GE, had said here that GE Money was planning to roll out its retail banking operations in India within the next two years.
Elaborating on that announcement, Bayman said an acquisition would give GE Money a jump-start in the business, though it would come with its share of liabilities. "We have banks in many countries. It fits in nicely with GE Money," he said.
According to Bayman, GE is looking at the public sector as well as the private sector for the acquisition. "Possibly, we will end up with a private
When asked how soon GE would wrap up the acquisition, Bayman said no schedule had been set. "We are interested in going ahead and will do it as soon as possible," he said.
Bayman said GE was also eyeing orders from the Indian armed forces with defence co-operation between India and the US improving of late. Though GE has sold its aerospace and defence businesses, it makes engines used in fighter as well as transport aircraft.
GE supplies engines to Lockheed Martin for F16 fighter aircraft. The Indian government's light combat aircraft project is also supported by GE engines.
The Indian government has declared its intent to purchase a new fleet of aircraft. If the government selects Lockheed Martin's F16s, Bayman said it could result in very large business for GE as the government was expected to place orders for as many as 126 aircraft over a period of time.
With the US putting nuclear power collaboration between the two countries on the table, Bayman said GE could get into the sector by providing the technology, equipment and long-term service to any Indian entity planning to set up a nuclear power plant.
