The Hindu Business Line : StanChart loans for SMEs to buy biz equipment

New Delhi, Feb. 10 Standard Chartered Bank has drawn up plans to make a determined entry into providing business equipment loans to small and medium enterprises (SMEs) in the near future, Mr Shyam Srinivasan, Country Head-Consumer Banking (India), has said.

This strategic intent of the largest foreign bank in India assumes significance in the light of the prevailing credit crunch faced by SMEs here. Standard Chartered sees SMEs as a big growth driver for its consumer banking business.

Standard Chartered bank would look at providing term loans to SMEs in certain sectors to fund their equipment purchases, Mr Srinivasan told Business Line when asked whether the bank was looking at an equipment leasing type product.

Mr Srinivasan, who was here to inaugurate a new office facility, said that the bank was actively focused and investing behind franchise growth. “Not many organisations in today’s market conditions will be in a situation of what we are doing just now — being able to focus on the customer and being able to do things that are franchise enhancing. We are in a privileged position,” he said.

Last week, , besides opening a new facility, two branches were relocated and relaunched in the National Capital Region. Standard Chartered has 18 branches in the national capital region. In all, the bank has 90 branches in 33 cities of the country. Plans are afoot to launch four new branches in the country in the year 2009 or latest by 2010. These will come up at Cuddapah, Saharanpur, Mathura and Dehradun.

one money card

Meanwhile, Mr Srinivasan said that the bank also plans to scale up its ‘one money card’, which is a credit card and a debit card rolled into one. This is a fee-based product (like a platinum card) that has been sold by the bank only on an invitation basis to select customers.

A customer, at the time of completing the transaction, is provided an option (through an SMS) of choosing between a credit card or a debit card while settling the transaction. Standard Chartered Bank may launch a variant to this product with a different fee structure and targeted at certain customer segments other than the high-end ones.

Mr Srinivasan felt that the demand for “straight and simple” products would increase consequent to the economic slowdown here on account of the global financial crisis. He also maintained that the bank does not see any requirement of capital as of now.

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