Australia and New Zealand Banking Group (ANZ) has finally received approval from RBI to restart its operations in India after 10 years. The group plans to set up its first branch in India in Mumbai in around a year.

The bank is eyeing a pretax profit of A$100 million ($90.50 million) from its Indian operations in the upcoming three to four years.

ANZ is the fourth largest bank in Australia and plans to extract major profits from the second fastest growing economy of the world, India.

"India is a real market of substance," said Alex Thursby, ANZ CEO Asia Pacific, Europe and America. ‘‘I am confident it will give us a good part of the A$1.5 billion 2012 targeted profit from Asia,'' he added.

Ten years ago ANZ had to make an exit from the Indian market after selling its assets to Standard Chartered Bank. The major and vital reason for its exit was its involvement in the Harshad Mehta scam, one of the biggest scams in the Indian capital market. The bank, then called ANZ Grind lays Bank and was the second largest foreign bank in the country.

But the Indian market scenario has changed a lot since then. It is now going to enter a market which is highly regulated. Nearly three-fourths of India's market is under the control of state run banks while amongst the foreign players also big shots like Citigroup, Standard Chartered and HSBC have a major share of corporate lending.

ANZ had to wait for two long years to get a banking license again from the RBI.

Ten years later, ANZ is re entering into the Asian wing and aims to get a fifth of its profit from there. The bank bought some Asian assets of Royal Bank of Scotland last year and is now focusing on China, India and South East Asia.

ANZ plans to focus on institutional lending and the mining and agricultural sector, Thursby said.