Business Daily from THE HINDU group of publications
Saturday, Nov 07, 2009
ePaper | Mobile/PDA Version | Audio | Blogs
Business Daily from THE HINDU group of publications Saturday, Nov 07, 2009 ePaper | Mobile/PDA Version | Audio | Blogs |
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Money & Banking
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Foreign Banks Web Extras - Outlook StanChart IDR issue not till March 2010 Our Bureau Mumbai, Nov. 6 Standard Chartered Bank may wait till March 2010 to launch its proposed issue of Indian Depository Receipts (IDRs). Last week, the UK-headquartered bank announced its plans to list in India through an issue of IDRs. A spokesperson for the bank told Business Line on Friday that the earliest the bank could go in for the issue would be the second quarter of calendar 2010. The bank also has technical limitations in going for a major equity dilution this year. Certain regulations stipulate the bank cannot dilute its equity above 5 per cent in one year without special permission and it had already gone in for dilution of around 3.8 per cent this year. Standard Chartered is the first entity to announce its plan to issue IDRs and it has reportedly received the RBI’s clearance. The bank appears to have started the exercise to ensure that its maiden issue of shares in India – one of its key markets in Asia — goes smoothly. The Group CEO of Standard Chartered, Mr Peter Sands, will be in India next week to assess the market situation and to meet the regulators. In its third quarter interim management statement issued last week, the bank said it is also exploring the possibility of listing in China. Standard Chartered is currently listed in London and Hong Kong.
The bank has yet to announce the size of the IDR issue, though the figures indicated by reports vary from Rs 2,500 to Rs 5,000 crore. Set up in 1858, StanChart is the largest foreign bank operating in India with 90 branches. Four more branches are expected to be opened in the next two months. The bank’s Indian operations reported a 14 per cent rise in operating profit to $526 million, for the first half of 2009, from $460 million in the corresponding period last year. Income increased by 9 per cent to $904 million from $829 million last year. These income and profit figures are excluding the $146-million income the bank had from the sale of its asset management business last year. More Stories on : Foreign Banks | Outlook
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