Is Gulf Emerging as the New Tax Haven after Switzerland for Indians?

Mumbai, Mar,12. The past few months have seen an unusual spurt in deposit flows into several banks in Dubai, Abu Dhabi and the UAE financial centres. Interestingly, the surge in deposits has come about following a pact between India and Switzerland on August 30 to exchange sensitive information on tax-evaders. The treaty was viewed as India’s first step towards obtaining information on funds stashed away in Swiss banks’ accounts. A similar agreement with Bermuda, another tax haven had been reached too.

If data compiled by the Central Bank of UAE is any indication, total bank deposits surged more than $11 billion in October compared to an average monthly growth of $2.7 billion since January 2010.

Speculation is rife that money is moving out of Swiss banks and Dubai is an obvious choice for Indians as there is no tax. The modus operandi for such transaction is often floating of a firm staffed with local directors (many of them being Indians working in the Gulf) in Dubai Free Trade Zone. Subsequently, funds are wired from a tax haven (say, Switzerland) to a bank account opened in the firm’s name. The money finally ends up in a local bank and the newly-established firm receives and shows it as consultancy fee from international clients or as trading income

Indian Banks’ Share in Global Banking Pie to Nudge 2.8% by 2015

Mumbai, Mar,12. If the forecast by a McKinsey & Company report is any indication, the share of domestic banks in the global banking pie could almost double from the current (or the end of financial 2009)1.5% (revenues worth $2850 bn) to 2.8% (revenues worth around $4000 bn) by the end of fiscal 2015. The underlying assets of the domestic lenders could nudge $3 trillion and deposits could go as far as around $2.3 trillion. In the backdrop of this stupendous growth, the banking and financial sector will continue to be the mainstay of the Indian economy.

The report also predicts that the next decade could see at least 5-6 domestic banks figure in the top global 100 list. Consolidation among the banks could also pick up.

The revenues of the domestic lenders more than quadrupled over the past decade from $11.8 bn in 2001 to $46.9 bn in 2010. Also, their net profit rose almost nine-fold from a meager $1.41 bn in 2001 to 12.06 bn in 2010.

Moreover, market capitalization of the top 5 lenders in the country including SBI, ICICI Bank and PNB is expected to rise higher from 55% in 2005 to 66% by the end of the current fisca

Indian Banks’ Share in Global Banking Pie to Nudge 2.8% by 2015

Mumbai, Mar,12. If the forecast by a McKinsey & Company report is any indication, the share of domestic banks in the global banking pie could almost double from the current (or the end of financial 2009)1.5% (revenues worth $2850 bn) to 2.8% (revenues worth around $4000 bn) by the end of fiscal 2015. The underlying assets of the domestic lenders could nudge $3 trillion and deposits could go as far as around $2.3 trillion. In the backdrop of this stupendous growth, the banking and financial sector will continue to be the mainstay of the Indian economy.

The report also predicts that the next decade could see at least 5-6 domestic banks figure in the top global 100 list. Consolidation among the banks could also pick up.

The revenues of the domestic lenders more than quadrupled over the past decade from $11.8 bn in 2001 to $46.9 bn in 2010. Also, their net profit rose almost nine-fold from a meager $1.41 bn in 2001 to 12.06 bn in 2010.

Moreover, market capitalization of the top 5 lenders in the country including SBI, ICICI Bank and PNB is expected to rise higher from 55% in 2005 to 66% by the end of the current fisca