Russian bank VTB Capital is set to expand in Asia

A common theme in 2012 has been Russian investment banks expanding into markets where other international firms are pulling back, in the hope that they could recruit talent that they’d otherwise perhaps struggle to attract.

Europe has been a target, as has the Middle East, but now banks are turning their attention to Asia. A report by financial services analytics firm Coalition says that redundancies are coming to investment banks in Asia. Last year, job cuts in Asia accounted for 8% of the global total, but so far in 2012 this figure has swelled to 18% and is expected to increase.

Understandably, front office investment bankers in the region are getting a little nervous. However, Russian bank VTB Capital is hoping to take advantage of the situation.

As the Wall Street Journal reports, it’s one of the few investment banks – aside from Cantor Fitzgerald that is hiring 1,000 people globally this year – to talk up hiring plans in Asia.

“We see opportunity intermediating the flows between Asia and Russia as well as financing Asian companies via high-yield, investment-grade debt or principal finance at a time when capacity is being withdrawn from the market,” said Damian Chunilal, VTB Capital’s chief executive for Asia, who. “Over time we’ll look to develop onshore banking platforms in Shanghai and Delhi.”