Actively considering listing in India, says StanChart

Today, Standard Chartered Bank, in its interim management statement for the third quarter of 2009, declared that it is keen on its assessment of listing its shares in the Indian stock exchanges for which discussions with the authorities are in progress.

Besides issuing the first ever Indian Depository Receipts (IDR) in India, Standard Chartered is also considering the feasibility of listing itself in China.

None of the multinational firms have tried the IDR route till now, though foreign corporates operating in India are allowed to issue IDRs which are designed on the lines of ADRs and GDRs. The issue size of Standard Chartered's IDR issue could be as huge as $ 1 billion (approximately Rs. 4,700 crore).

According to the familiar sources with such decision, the idea behind such move was to strengthen the company's brand value in the country though there is no requirement of funds for the company as of now.

The source further informed that the bank is trying to establish an image of local bank and not a foreign bank for itself in the country. Though deciding on the timing of such issue is still pending. Standard Chartered's Indian and South Asian CEO, Mr. Neeraj Swaroop had said that the bank has got nod from RBI for coming up with the IDR issue and would be soon approaching the SEBI for approval.

The Asian and African countries contribute a major 90% of the operating income for Standard Chartered Bank which has its existence in over 70 countries, employing over 70,000 people.

The lender in its interim management statement commented that there are clear signs of recovery in Asia and their economy is behaving strong. Their economic growth rates outperformed the Western Economies. Such solid resilience is attracting increased competitive environment from both local and foreign banks.