‘Many global investors have been overweight on dollar assets, so some diversification or hedging is naturally expected.’

Illustration: Dado Ruvic/Reuters

Merger & acquisition (M&A) in India this year is expected to be robust, driven by consolidation, while private-equity interest remains strong, especially as companies look to scale up and digitise operations, says Jin Su, president of Asia Pacific and head of Asia Pacific Global Markets, Bank of America (BofA), in an email interview with Manojit Saha/Business Standard.

How is BofA planning to revamp the investment banking team here with the induction of Vikram Sahu as country executive?

Over the past few decades, we have had a strong team in India and that has made the bank one of the best foreign banks in the country.

The appointment of Vikram Sahu as India country executive signals just how committed we are to India. Through this, we are deepening our talent bench and bringing fresh perspectives on how to best serve clients.

In our business, one must stay flexible. The business environment is always changing, and so we must be ahead of that.

Ongoing investment in technology, talent, and our overall platform is the key to our success and that of our clients.

What are the business segments in India that Bank of America will focus on?

India is one of the world’s fastest-growing major economies with a government focused on digital public infrastructure and financial inclusion, among other things.

In my travels around the world, I often cite these aspects of the Indian economy to clients and investors as they consider their investing options.

Our focus will be on deepening our presence in segments such as corporate and institutional banking, equities, transaction banking, forex and interest rate solutions, and trading.

By leveraging our global expertise and local insights, we aim to be a trusted partner for Indian firms, multinationals, financial institutions, and institutional investors from all over the world.

How would you characterise the current global deal-making environment, and what trends are you seeing in M&A and capital markets?
Which are the sectors in India where you expect more M&A?

While macroeconomic headwinds and geopolitical uncertainties persist, we are seeing a gradual return of confidence, particularly in sectors like technology, healthcare, infrastructure, and renewable energy.

In India, our team believes M&A this year is expected to be robust, driven by consolidation opportunities and cross-border strategic investment.

My colleagues anticipate increased activity in sectors such as digital infrastructure, financial services, consumer goods, and renewable energy, where strategic realignment and capital deployment are accelerating.

Private-equity interest remains strong, and we see a growing appetite for strategic partnerships, especially as firms look to scale up and digitise operations.

The dollar has been weakening. How long do you expect this to continue?

We expect pressure on the dollar to continue in the near term though the pace of weakness may vary.

Our economists believe that while the dollar will still hold a significant share of global foreign exchange reserves, diversification efforts will be seen on the margins, with several countries promoting the use of their local currencies in international trade. We have seen this.

Many global investors have been overweight on dollar assets, so some diversification or hedging is naturally expected.

As the world talks of de-dollarisation and the emergence of alternative reserve currencies, what is your assessment of this and what does this mean for the rupee?

The dollar will remain the dominant currency for international trade and finance and its role as a reserve currency is unlikely to be challenged in the near term.

Like other economies, India is promoting the use of its local currency in international trade, and more policies aimed at making India’s capital account more open will help the rupee internationalise.

With shifting trade alliances and an evolving geopolitical environment, how is Bank of America repositioning its strategy in emerging markets like India?

Emerging markets like India play an increasingly critical role. We are repositioning our strategy with a focus on risk management, regulatory alignment, and long-term capital investment.

We aim to align with ‘Make in India’ and supply chain diversification imperatives and support cross-border trade, foreign direct investment, and global supply-chain shifts by offering tailored financial solutions that meet the needs of both local and international clients.

Feature Presentation: Aslam Hunani/Rediff.com