Anshu Jain likely to assist govt in key policies back home
While Anshu Jain has said his future options were open, people in the know said there was a strong possibility that Jain could come to India as part of an advisory set-up to assist in key policies. Jain and his co-CEO at Deutsche Bank, Jurgen Fitschen, stepped down from their positions on Sunday.business Updated: Jun 09, 2015 05:45 IST
While Anshu Jain has said his future options were open, people in the know said there was a strong possibility that Jain could come to India as part of an advisory set-up to assist in key policies. Jain and his co-CEO at Deutsche Bank, Jurgen Fitschen, stepped down from their positions on Sunday.
Perceived by his banking industry peers and those in the government to be keen on associating with policy-making, Jain is likely to be offered an advisory post, two people familiar with the issue said on Monday.
While Jain will step down by June-end, he will continue in an advisory role at Deutsche Bank till January 2016, to assist new CEO John Cryan in the transition. Cryan’s appointment sent shares up 8% on the German stock exchange on Monday.
“Anshu has been a keen observer of the policies of the Indian government and has taken an active interest whenever possible,” the India head of a private bank said on the condition of anonymity. The Deutsche Bank co-CEO has, in the past, featured on Indian investment committee panels formed to woo FDI, and has also been part of the Maharashtra government’s delegation to advise on modalities of making Mumbai an international financial services centre.
Deutsche Bank did not comment on Jain’s future plans.
Familiar with the intricacies of policy-making, Jain had earlier advised the UK Treasury department on financial stability.
Since German companies have had a strong presence in developing modern urban systems, including smart cities, it is widely believed that Jain would be associated with a similar projects in India.
After heading Deutsche Bank’s investment banking division, the Jaipur-born University of Massachusetts alumnus was hand-picked to head the German bank in 2012, becoming the first Indian to do so, mainly on the back of his division’s performance, which contributed to almost 86% of the bank’s overall profits.
However, a controversy regarding the alleged rigging of the Libor — a benchmark rate that some of the world’s leading banks charge each other for short-term loans — where Deutsche Bank had to pay $2.5 billion as fine, spurred a cost-cutting exercise, which irked the bank’s shareholders who voted against the management.
Deutsche Bank top management, however, has been supportive of Jain’s contribution.
“Anshu has been instrumental in founding and then growing many of Deutsche Bank’s leading businesses,” said Paul Achleitner, chairman of the supervisory board of Deutsche Bank.