Mumbai, March 10: Standard Chartered Bank has set up a non-banking finance company (NBFC) here.

Standard Chartered Investments and Loans (India) Ltd — a wholly-owned subsidiary of the bank — will have a paid-up capital of $7.5 million, which will be progressively increased to $50 million in the next couple of years.

Chris Low, who is the CEO of Standard Chartered Bank, India region, said, the new company establishes not only the growing importance of the region, but also the group’s commitment to the country.

Even as India remains a key revenue-earner for the group, Standard Chartered Investments will supplement its growth by leveraging its presence in the financial sector, he added.

“With the introduction of corporate advisory and commercial real estate services and the non-banking finance company, Standard Chartered is uniquely positioned to cater to a diverse set of customers,” he said.

Regional head (global markets) M. A. Ravi Kumar said after 12 months, the balancesheet of Standard Chartered Investments will be roughly Rs 1,100 crore, which will rise to Rs 2,300 crore after two years. He added that the non-banking finance company would own corporate assets and investments in securitised papers emanating from the retail and small and medium enterprise sectors.

“Standard Chartered Investments will help diversify our funding base by allowing access to the capital market. We will enter the market through commercial papers, inter-corporate deposits and non-convertible debentures,” he said.

Sources said the prevailing liquidity surplus would provide excellent investment opportunities for its corporate customers.