The Hindu Business Line : StanChart infuses $250 m more into India unit

Stanchart’s 150th anniversary: (From left) Mr Peter Sands, Group Chief Executive Officer, Standard Chartered Plc; Mr Neeraj Swaroop, Regional Chief Executive -India and South Asia; and Mr Jaspal Singh Bindra, Director, at the Victoria Memorial Hall in Kolkata on Wednesday. Mr. Peter is in the city to celebrate the 150th anniversary of the bank’s operations in India. The bank opened its first Indian branch on April 12, 1858 in Kolkata and now operates 83 branches in 33 cities.

Our Bureau

Kolkata, April 16 Standard Chartered Bank has infused fresh capital of $250 million in its Indian banking operations in order to support the growth of the wholesale and consumer banking services, said Mr Peter Sands, Group Chief Executive, Standard Chartered Bank.

The capital infusion will take the bank’s total capital base to $1.9 billion and will bolster the capital adequacy ratio to 10-11 per cent, Mr Sands said, speaking at a function commemorating the bank’s 150 years in India, here on Wednesday.

Standard Chartered is planning to set up a $500 million microfinance facility catering to an estimated four million people in emerging markets. The bank plans to partner 20 microfinance institutions in India by December this year and extend operations to the north and northeast, which are relatively untouched by the banking industry.

Integration under way

Standard Chartered Bank expanded with the acquisition of American Express Bank. “The integration of the acquisition is still not complete. Once the integration is done and we receive approval from the Reserve Bank of India, we will acquire the seven branches of American Express Bank which will take our branch strength to 90,” said Mr Swaroop.

When asked if the bank would look at further acquisitions, Mr Sands said that the bank would primarily focus on organic growth. “Acquisitions, if any, will only be complementary to our strategy and will not be a key driver of growth,” he said.

Scouting for partner

The bank has 83 branches and 231 ATMs at present and is applying for 40 branches and 300 ATMs to the central bank this year. The bank had plans to set up an asset reconstruction company along with a partner. “We have received an approval from the RBI for setting up the ARC. We are yet to finalise a partner for the same. We are in an advanced stage of talks with a few,” said Mr Swaroop, refusing to divulge further details.

More Stories on : Foreign Banks | Events

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Rupee steady against dollar

Vijaya Bank, CARE sign pact

United Bank plans capital rejig

StanChart infuses $250 m more into India unit

Bond market bearish

SEBI allows MFs to sell G-Secs without taking delivery

Call rates tad higher

Credit card business growth slows down

SBI, Macquarie, IFC enter pact to float $2 b fund

Insurers in brokerage bring poaching fears