Financial Daily from THE HINDU group of publications
Thursday, May 16, 2002
Financial Daily from THE HINDU group of publications Thursday, May 16, 2002 |
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Money & Banking
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Foreign Banks StanChart to strengthen Chennai back-office centre Our Bureau
BANGALORE, May 15 STANDARD Chartered Grindlays Bank plans to increase its staff strength to 2,000 by end of December 2003 from 500 in its Chennai based back-office processing centre, the CEO of India region, Mr Jaspal Bindra, said. The bank currently has such a centre in Kuala Lumpur and Chennai and is on the lookout for a similar effort in China, he added. The centre is likely to be one of the three to address the back-office needs for 33 countries where Standard Chartered has presence. Moreover, the bank is open to buy out retail portfolios from other financial institutions to propel its growth in the Indian market, he said. "Many come to us to talk," Mr Bindra said, adding that the bank is currently not looking at any possible buyouts. "(Post ANZ merger) We have a huge platform to grow organically and the pendulum is very biased towards organic growth," Mr Bindra said. Consumer banking, comprising the profitable credit card business, is likely to be the trigger for the banks growth in India, Mr Bindra said. Currently, 40 per cent of the bank's net profit comes from consumer banking and credit cards contribute to 50 per cent of the consumer banking's profit. "Growth will be more rapid in mortgages and credit cards," he added. However, he did not detail any expected numbers. Currently, 15 per cent of the bank's asset base comes from consumer banking and the remaining 85 per cent is wholesale banking. The bank also "has an ambition" to foray into factoring services but feels the current "time is not right to do so." Moreover, Standard Chartered, which outsources a "very small amount" of its global IT needs to India, is currently "evaluating" the possibility to broaden such relationships, Mr Bindra added.
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