Mizuho's India strategy is to build a Japan-India investment corridor by combining its commercial-banking strengths with expanded investment banking capabilities, supported by its Avendus Capital acquisition in December. Mizuho Bank Global CEO Masahiko Kato tells ET, in what is his first interaction with the domestic business media since the Avendus deal announcement, that India has rapidly become the most promising destination for Japanese companies. Kato, who leads the banking business of Japan's third-largest megabank with assets of $2 trillion, added that client inquiries related to India have surged sharply in recent years. Edited excerpts:How do you view the recent tariff agreement between India and the US from a Japanese corporate perspective?These agreements are ultimately matters between governments, but from a business standpoint, I see them as positive and constructive. Trade deals create a more predictable global economic environment, which is vital for companies making long-term decisions. Improvements in India's trade relations-not just with the US but also with the EU-are encouraging for global supply chains and long-term investment planning. It also underscores India's negotiating capability.How will the Avendus acquisition work, and how will the collaboration be structured within Mizuho?Avendus has been acquired by Mizuho Securities, not Mizuho Bank, and the collaboration will be group-wide. Mizuho Bank maintains deep relationships with nearly 80% of Japanese corporates, and we will leverage this client base to introduce Avendus to companies looking to invest in India.Mizuho Securities brings a strong global client portfolio, while the bank has close ties with the senior management of Japanese clients. Together with Avendus, we will create a seamless Japan-India-US investment corridor, integrating banking, securities, and boutique advisory capabilities. This combined model-bank + securities + Avendus-is the core of our global corporate and investment banking (GCIB)strategy, and we will continue to focus on corporate and investment banking, which is our strongest area.Why did Mizuho choose Avendus? What does it add to your India strategy?Avendus is an excellent company with a strong franchise in India's investment banking and wealth businesses. It fills an important gap for us. Globally, we have Greenhill in the US and Augusta in Europe. India was the missing piece in our global boutique network. Avendus allows us to build a seamless India-Japan-US-Europe investment corridor. Our bank has deep client relationships-especially with Japanese corporates-while Avendus brings strong on-ground investment banking capability. Together, we can offer holistic solutions: cross-border M&A, financing, advisory, and strategic capital raising.What does Mizuho see as its competitive edge in India?Our strengths originate in Japan. We serve 80% of Japan's listed companies and have built a strong global corporate and investment banking model, particularly in the US, where our equity capital market and debt capital market rankings are No. 1 among non-US players. We are now applying this model to Asia, including India. Our strategy is to combine the strengths of Mizuho Bank and Mizuho Securities with platforms such as Greenhill and Augusta, and now, pending regulatory completion, Avendus in India. Once Avendus formally joins us, we expect powerful synergies that will help clients on both sides.How does India compare with China and other Asian markets for Japanese investors?Japanese companies now view India as their most promising market. Japan Bank for International Cooperation surveys have ranked India No. 1 since 2022, and Japanese investment is set to reach 1.2 trillion yen in 2025. Conversations in Tokyo increasingly focus on expanding in India, and our client inquiries rose over 50% in FY2024. India stands out for its 1.4-billion-strong market, rising GDP, and strong consumption. Its digital ecosystem and deep technology talent make it a key hub for innovation. India also offers competitive conditions in semiconductors, materials, and renewable energy, sectors where many Japanese companies are now exploring opportunities.Japanese investors have made several large investments in Indian financial services recently-Yes Bank, Shriram Finance, and now Avendus. What explains this interest?Two reasons. First, the relationship between India and Japan-governmental and people-to-people-is very deep. Second, the Indian financial sector across banking, NBFCs, asset management and investment banking is growing rapidly. Japanese investors are poised for exponential, not incremental growth in India's financial sector over the coming years.Mizuho is also expanding its Global Capability Centres (GCCs) in India. What is the road map?Today, our GCCs in Navi Mumbai and Chennai employ 650 people. which is about eight times more than four years ago. We are now setting up a third location, after which our headcount will increase to around 1,000.Is Mizuho planning further capital infusion into India?In 2023, we injected $500 million into the India business. Further capital plans will depend on the market environment and growth strategy.Does Mizuho plan to enter retail banking in India?No. Our global strategy is clear. Outside Japan, our focus is the global commercial-investment banking model (GCIB). Retail banking is not part of our India strategy.What is your broader vision for Mizuho in India?We have been in India for more than 30 years and are deeply committed to this market. Our strategy is to build the India-Japan corridor-supporting Japanese companies entering India and Indian companies expanding overseas. We aim to bring the full strength of the Mizuho group-commercial banking, investment banking, and global boutique advisory-into a single integrated offering. This model has succeeded for us in the US, and we are confident it will succeed here as well.
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