Standard Chartered Bank today said it was actively considering listing its shares in India. For this, discussions were on with the authorities, it said in its interim management statement for the third quarter of 2009.
Apart from Indian Depository Receipts (IDR), which will be the first such issue in the country, Standard Chartered said it was also exploring the possibility of listing itself in China.
Foreign entities with operations in India are allowed to issue IDRs, which are modelled on the lines of American Depository Receipts and Global Depository Receipts. But none of the multinationals have tapped this route so far. Standard Chartered’s IDR issue could be of the order of $1 billion (around Rs 4,700 crore).
Sources familiar with the development said the bank did not need funds at the moment and the idea was to enhance its brand value in the country.
“It wants to be identified as a local bank and not as a foreign entity,” said a source.
The source said only the timing of the issue needed to be decided. Earlier this month, Standard Chartered’s India and South Asia CEO Neeraj Swaroop had said the bank had got approval from the Reserve Bank of India for the IDR listing and would soon approach the Securities and Exchange Board of India.
Standard Chartered, which is present in over 70 countries and employs over 70,000 people, earns more than 90 per cent of its operating income and profits from Asia and Africa.
“It is clear that the economies in Asia are rebounding and remain resilient. Their economic growth rates remain well above the rates of growth for markets in the West. This greater resilience is also attracting increased level of competitive behaviour from both local and international banks,” said the lender said in its interim management statement.
Also read: Oct 11: StanChart gets RBI nod for Rs 5,000-cr IDR issue