Standard Chartered to invest $250 mn in India operationApril 16th, 2008 - 9:17 pm ICT by admin
Kolkata, April 16 (IANS) Global financial major Standard Chartered Plc will invest $250 million to expand its operation in India, taking the bank’s total capital base to $1.9 billion, its group chief executive said Wednesday. “This total investment of $250 million will strengthen the bank’s capital adequacy ratio (CAR) and support the wholesale and consumer banking services,” Peter Sands told a press conference here Wednesday.
He said Standard Chartered Bank has a CAR of over 10 percent.
“The present turmoil and volatility in the global financial market is expected to continue for next few months. A lot of risk pricing and de-leveraging still needs to be done,” he said.
Sands said the bank was also setting up a $500 million micro-finance facility globally with a target to reach out to four million people in the emerging markets.
“Of this total amount, $150 million has already been invested internationally and about $50 million has been put in India as well. I hope about 30 percent of the total amount will come to India for the purpose of setting a micro-finance facility,” he said, adding that the total amount would be invested over a period of five years.
To consolidate its base in north and northeastern states in India, the bank is also eying to partner with over 20 micro-finance institutions by December 2008.
He said the Indian market contributes about 17 percent to the bank’s global operations while the Asia and the Middle East jointly have about 80 percent share of its total international business.
The bank derives more than 90 percent of its operating income and profits from Asia, Africa and the Middle East.
Sands said: “We have registered a growth of 27 percent in 2007 with a profit of $4 billion globally. The total income of the bank was $11 billion last year. Since India has been one of the fastest growing economies, we will continue to invest more in growth and build our position in India.”
Standard Chartered Bank has 83 branches across 33 cities in India. It has 231 ATM facilities across the country. The bank has also applied to open 40 more branches in India.
“We are looking at all metropolitan cities to strengthen our banking network in India,” Standard Chartered Bank chief executive officer (Asia) Jaspal Singh Bindra said.
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