New Delhi: Indian market turns a safe zone for multinational banks that are facing setbacks in foreign markets due to financial crunch and they are now planning to expand operations in India.

While many banks are forced to review their expansion and hiring plans in Europe and America to counter liquidity crunch, they are optimistic over Indian market and all set to strengthen Indian operation by adopting new strategies.

Initially, Swiss banking firm UBS, one of the worst hit European banks, is expected to launch its commercial banking operations within the next few months. UBS had more than $43 billion as total write-downs. The bank was given a 12-month timeframe under the license it was granted, which is set to expire in February 2009.

"Recent global developments like the write-down or internal restructuring of UBS would not impact our India plans," UBS officials told The Economic Times.

"The rollout of banking operations in India is going on in full swing. Necessary infrastructure, premises and team are in place and we are looking forward to appoint a CEO. We have put the needed $25-million capital also in place," said officials at UBS' Asia-Pacific Operations headquarters.

Another financial service company, Credit Suisse, which already has merchant banking and portfolio management business in India, is also going to expand its Indian operation. "We are rapidly expanding operations in India and consider it as one of our core growth markets in Asia. We are going ahead with process of opening non-banking financial company in India which will allow us to provide onshore corporate finance, and to develop structured products," bank official pointed out.

They added that Credit Suisse is putting larger team in India and several senior level appointments were done in August.

Moreover, ANZ, one of the largest banks in Australia and New Zealand has applied for a full banking license in India and is planning to reorganize its management to focus in Asian expansion, is betting big on India. "The bank remains committed to develop a significant presence in this attractive market," said an ANZ spokesperson.