This Time It's India Risk... Bank Sector Employee Management 'Anxious' (Comprehensive)

Another Overseas Setback After the Myanmar Situation

[Asia Economy Reporter Park Sun-mi] Following the experience of repatriating expatriates due to the Myanmar military coup, South Korean banks are now on high alert in managing local staff in India, where COVID-19 deaths are rapidly increasing. Although no decision has been made to withdraw expatriates yet, India ranks third in Asia for the number of overseas branches of domestic banks after Vietnam (18 branches) and China (17 branches), so banks are closely monitoring the situation while maximizing remote work.

According to the Financial Supervisory Service on the 10th, as of the end of last year, eight domestic banks have overseas branches, local subsidiaries, or offices in India. Shinhan Bank operates local branches in six regions: New Delhi, Mumbai, Kanchipuram, Pune, Rangareddy, and Ahmedabad. Woori Bank has three branches, Hana Bank two branches, KB Kookmin Bank one branch, NH Nonghyup Bank one office, and Busan Bank one office. Among policy banks, Industrial Bank of Korea and Export-Import Bank of Korea each operate one branch and one office, respectively.

Shinhan Bank, with 320 employees working across six branches in India, is currently operating essential services with only 15% of staff in the Maharashtra region (Mumbai, Pune) following state government orders, while other branches are running with half of their staff working remotely. A Shinhan Bank official stated, "We are not yet considering repatriating expatriates, but we are prioritizing employee safety and operating with minimal staff." They added, "Expatriates’ families are already in the process of returning home." The official also explained, "To ensure the safety of expatriates and local employees, we have delivered support supplies such as masks, diagnostic kits, and food. Since there is concern about oxygen shortages if employees test positive, we are preparing to ship oxygen generators locally."

[Image source=Yonhap News]

No Expatriate Withdrawal Yet, Monitoring Situation with Remote Work

Woori Bank, with 33 employees including nine expatriates in India, is not considering expatriate withdrawal but has shortened business hours from 10 a.m. to 2 p.m. at its three branches to minimize employee impact. Some staff are working remotely, and the bank is strictly following quarantine guidelines such as temperature checks for all employees and disinfecting twice a week while closely monitoring the COVID-19 spread.

KB Kookmin Bank has shifted half of its workforce to remote work, and Hana Bank is operating on a principle of remote work for all except essential personnel. NH Nonghyup Bank has mandated remote work for all employees at its New Delhi office since mid-last month. Banks have diagnostic kits available at branches and conduct daily closures and external disinfection services when confirmed cases occur. They also support vaccination costs for local employees and are promoting temporary repatriation support for expatriate families who wish to return.

Industrial Bank of Korea currently has four expatriates maintaining the New Delhi branch through rotational remote work. Plans for expatriate repatriation will be made in response to the COVID-19 situation and local business conditions, with repatriation recommendations initially given only to accompanying family members, who are expected to return to Korea soon. Export-Import Bank of Korea is also operating its local office in a remote work format and will decide on expatriate repatriation after monitoring the local situation.

India, which on the 1st became the first country in the world to surpass 400,000 daily new COVID-19 cases, continues to see hundreds of thousands of new infections daily, but hospitals are already overwhelmed, leaving many patients without treatment. Daily new deaths are also around 4,000.

The COVID-19 surge in India following the Myanmar coup poses a risk to South Korean banks, which are turning to overseas markets to secure continuous revenue sources beyond the limited domestic market.

Domestic banks have been focusing on expanding new overseas businesses since the beginning of the year to counteract deteriorating profitability in the domestic market due to low growth and low interest rates. Recently, KB Kookmin Bank obtained preliminary approval from the Monetary Authority of Singapore to establish a branch and set up an Asia Credit Review Center, expanding its scope from credit reviews in Hong Kong and China to Southeast Asia, India, and Oceania. NH Nonghyup Bank also received final approval to establish a branch in Hong Kong. Woori Bank, which has a network of 15 branches in Vietnam, plans to open five additional branches there by the end of the year.

This content was produced with the assistance of AI translation services.