Financial Daily from THE HINDU group of publications
Monday, Jan 09, 2006
Financial Daily from THE HINDU group of publications Monday, Jan 09, 2006 |
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Money & Banking
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Foreign Banks StanChart gets nod for ARC, scouts for PSB partner Ambarish Mukherjee
New Delhi , Jan. 8 STANDARD Chartered Bank is in talks with several public sector banks for setting up an asset reconstruction company. According to the bank's plan,StanChart, through its Indian subsidiary, Standard Chartered Investments and Loans (India) Ltd (SCILL), will hold 49 per cent equity in the company amounting to Rs 49 crore. SCILL has got permission from the Finance Ministry to go ahead with its plans. The asset reconstruction company, likely to be named as `Special Asset Reconstruction Company Private Ltd' (Spark) will have 51 per cent Indian shareholding that may be taken up by one or more public sector banks for which talks were on, sources said. The Government has also permitted SCILL to acquire 10 per cent stake in Mumbai-based ASREC (India) Ltd, engaged in securitisation and asset reconstruction. However, the Government permission is conditional. "This is an instance where a foreign-owned Indian holding company is making downstream investment in another Indian company whose activity does not qualify for automatic route. "Further, Standard Chartered Bank, which is the holding company of SCILL, already has previous ventures in the same or allied field in India. So, it will have to comply with the SARFAESI Act (the legislation that enables recovery of bad assets)," officials said.
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