ABN AMRO

BANK (INDIA)

Background
ABN AMRO (India) has had a long-standing presence in India, having been in Kolkata and Mumbai
since 1920. Traditionally known as a “diamond-financing bank”, it has transformed itself from a bank
focusing on the corporate business segment into a bank providing a comprehensive range of
services across multiple channels. After the merger of ABN and AMRO worldwide, the bank
started expanding in a big way in India, 991 onwards. The Delhi branch was set up in the very same
year and ABN AMRO was launched in other Indian cities between 1994 and 1999. Anticipating
the emergence of retail banking in India, the bank acquired the retail business of the Bank of
America in 1999. Currently ABN AMRO has 16 branches across 11 cities. The Bank had a total
income of US$ 248.1 million in 2003-04 and employed about 1,400 people.
ABN AMRO Bank has a strong focus on the consumer and commercial clients business in India
and it currently offers a wide range of assets (auto loans, personal loans, loans against securities),
liability (current, savings accounts and term deposits) and investment products (mutual funds) to
its customers.

One of the largest foreign

banks in India
ABN AMRO has emerged as one of the most
profitable banks and one of the largest foreign banks
in India (in terms of Total assets in 2002-03). Net
profits of ABN AMRO (India) have grown at a CAGR
of 30 per cent since 1999-2000. Its non-performing
assets were amongst the lowest in the industry at
0.88 per cent.
ABN AMRO was awarded the Best Indian Bank in
the Business Today-KPMG Best Banks Survey 2002.
ABN AMRO ranks 2nd in terms of Business per branch
and 2nd in terms of Operating profit per branch.

Factors for success

ABN AMRO has used technology as the key
differentiator to gain competitive advantage and create
a unique customer value proposition. ABN AMRO
has been successful in India owing to its customer-

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 Retail strategy
The retail assets of Indian banks grew at a CAGR of
25 per cent in the last 3 years (The growth was 35%
last year). With its strategic acquisition of the retail
portfolio of Bank of America, ABN AMRO had
positioned itself effectively to leverage on this boom.
The Bank’s emphasis on technology has helped it
in its aggressive retail banking initiatives that
require high transactions processing capability and
computing power.

Exemplary customer service:

The relationship approach
ABN AMRO believes in taking the bank to the
customer. Continuing with this philosophy, it launched
Doorstep banking, where cash and Demand Drafts
are delivered at, and cheques picked up from the
customer‘s doorstep.

centric banking approach. By anticipating the needs

of customers in advance and launching innovative
products, the bank has been able to cash on the retail
boom in the country. ABN AMRO has tied up with
various financial services institutions (like insurance
companies) in order to provide a whole gamut of
financial solutions to its customers.

Pioneer in adopting technology

The implementation of a robust core banking solution
in 2001 enabled ABN AMRO India to offer 24/7
integrated multi-channel banking and to be the first
bank in India to realise the potential of the mobile
channel.
The bank launched NetBanking, its e-banking
solution, in 2002. It is amongst the best in the country,
with advanced transaction and enquiry facilities
including Cyber Receipts and Short Messaging Service
(SMS) mobile alerts. In order to take advantage
of the booming cellular base of India, ABN AMRO
has launched Mpower, a comprehensive mobile
banking platform.

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In 2001, ABN AMRO developed Van Gogh Preferred
Banking (VGPB). VGPB is a relationship banking
approach for high net worth customers, professionals
and business owners. A dedicated Relationship
Manager, whose focus is to anticipate and provide
for the client’s every financial need, gives VGPB
customers personalised service.
In order to ensure a pan India reach for customers,
ABN AMRO tied up with UTI Bank for sharing its
ATM networks. This has also helped ABN AMRO
minimise capital expenditure required for an extensive
ATM network.
One stop shop for financial services needs of
customers
Apart from its focus on consumer and corporate
banking activities, in order to provide a complete
range of financial solutions, ABN AMRO has tied up
with Aviva for life insurance needs of its customers.
It has tied up with ICICI Lombard General Insurance
Company to launch ‘LoanProtect’, an insurance cover
as an add-on facility on all its consumer loans (home,
personal, as well as auto loans). The bank also offers
Broking services, Depository participant services and
advice on investing in Mutual Funds to its customers.
With the Indian economy poised for robust growth
and offering abundant investment opportunities, ABN
AMRO has launched a mutual fund in June 2004.
Low borrowing costs due to captive
liability base
ABN AMRO Bank has been successful in keeping
low borrowing costs by effectively packaging products
to suit individual customer
requirements. At 1.95 per
cent in 2003-04, the bank
had amongst the lowest cost
of funds in the Indian banking
industry. The net interest
margin of the bank was
amongst the highest in the
industry at 4.9 per cent.
FORTUNE 500 COMPANIES IN INDIA
Leveraging the India Advantage
ABN AMRO has been leveraging India for back-office
and software development operations:
Off-shoring business processes
Leveraging India’s large pool of highly talented and
English-speaking workforce, ABN AMRO has
outsourced business processes from about 18
countries to its back-offices in Chennai, Mumbai and
Delhi. The headcount in these centres is about 1,200.
ABN Amro has found that off-shoring business
processes to India is paying off, not only in terms of
cost reduction and quality enhancement, but also in
enabling it to scale up its business across the globe.
Future plans
ABN AMRO Bank NV has identified India as a key
growth market for its business and has significant future
plans for India.
• ABN AMRO has recently given the India
operations a “Home Bank” status , which signifies
that India is one of the Top Three priority markets
for the Bank.
• ABN AMRO Bank plans to invest US$ 1 billion in
India for selective acquisitions. Besides acquisitions,
the bank plans to spend the proposed amount to
build its franchise and to enhance its brand name
in the country. According to the bank’s roadmap,
it hopes to be in 100 Indian cities in the next few
years, with an initial plan to expand to 30 cities.
• The Bank also intends to focus on the organic
growth model and has applied to the Reserve
Bank of India (the regulator for Indian Banks) for
converting its branch licence to that of a subsidiary.
ABN AMRO is the first foreign bank to apply for
subsidiary status to the regulator.
• ABN AMRO plans to double the headcount of
its Business Process Outsourcing (BPO) division
to 2,400 employees by the end of the year.
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