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Standard Chartered keen to set up finance company

Mumbai, Dec. 1: Standard Chartered Bank is planning to set up a non-banking finance arm with an initial capital of $7 million. This will subsequently be expanded to $50 million.

The setting up of the finance company is another effort by the bank to widen its presence in the country.

According to global head (corporates and institutions) Jaspal Bindra, the bank has steadily expanded its services in India as it considers the country to be one of its biggest growing markets. “We have made the right call,” he added.

Speaking on the leading foreign bank's plans for India, Bindra said the current contribution of the country is around 15 per cent to the group. This figure is likely to grow further, both in absolute and percentage terms, in the next few years, he added.

“We are the leading international bank in India and we will do everything in our power to retain that position,” he said.

Bindra said in addition to growing organically, the bank has also followed the inorganic route in the past. If acquisition presented a good opportunity to grow further, it could be done again, he added.

According to CEO-India region Christopher Low, the finance arm will be used by the group as a vehicle to raise funds. He added that it will raise funds through issue of bonds and not through deposits.

The company, which will be fully owned by the bank, could raise funds at a cheap rate through issuing bonds as it will not be subject to cash reserve ratio and statutory liquidity ratio stipulations.

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