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Standard Chartered Bank to raise resources in Indian market

Chennai, May 18 (IANS) Britain-based global bank Standard Chartered Plc will come out with its first ever Indian Depository Receipt (IDR) issue May 25 to increase its market visibility and brand image in India.

‘The IDR issue is primarily to increase our market visibility and brand profile in India and also to give Indian investors an opportunity to invest in the company and participate in its growth,’ the bank’s group executive director, Jaspal Singh Bindra, told reporters here Tuesday.

He said every 10 IDRs will represent one share of the company of $0.50 and issue price will be decided by the book building process.

Standard Chartered has the largest foreign bank network in India. Bindra said the bank has 94 branches and it is willing to open more provided it is permitted by the Reserve Bank of India.

He said Indian investors can participate in the issue despite the factors like dividend and other taxes that the IDR would attract as per Indian tax laws.

‘All kinds of entities, except Indian insurance companies, can subscribe to the IDRs. The insurance regulator has banned Indian insurers from subscribing to issues by a foreign company,’ Bindra said.

Speaking of the business, he said the Indian operations is the second highest profit earner ($1,060 million) for the bank after Hong Kong’s $1,062 million.

According to Bindra, the bank is transforming its consumer banking service with more focused approach to individuals and small and medium enterprises.

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