Sumitomo Mitsui Banking Corporation (SMBC) and Standard Chartered Bank . announced that the two banks have signed an agreement by which Standard Chartered will acquire the Indian branch operations of Sumitomo Mitsui Banking Corporation in Mumbai and New Delhi, subject to regulatory approvals. | |
| The two banks have submitted the application to the Reserve Bank of India. |
| |
| The transaction is expected to be complete by March 2005, a released issued by both the banks said. The deal is subject to the provisions of the Banking Regulation Act, 1949 whereby SMBC will transfer its assets and liabilities in India to Standard Chartered Bank subsequent to the relevant authority's approval. |
| |
| Standard Chartered Bank and SMBC will also be entering into a strategic relationship to support and enhance business growth in the Japanese customer-related banking business in India. |
| |
| This alliance includes the establishment of a Japan Desk by Standard Chartered Bank in India. SMBC will second Japanese experts to the Japan Desk to assist the business with Japanese customers in the country. While the process of integration is expected to take several months, both organisations are focusing efforts on ensuring that all stakeholders of SMBC in India will experience a smooth transition. |
| |
| Chris Low, CEO India Region, SCB, said : "The acquisition of SMBC's business in India and the establishment of the Japan Desk provides a unique solution for an important institutional client. Further, it will strengthen the corporate banking franchise of the bank in the country, especially in terms of important Japanese corporate customers. It is completely in line with our growth strategy and is another step towards our aspiration of becoming the world's best international bank, leading the way in Asian markets." |
| |
| Our Economy Bureau, New Delhi, adds: Mitsui Sumitomo, Japan's second largest insurance company, has picked up 50 per cent stake in Murugappa group's risk service business. The group's existing risk services company will be renamed as Cholamandalam MS Risk Services Ltd after this tie up. |
| |
| The group already has a joint venture with Mitsui for its general insurance venture. |
| |
| "The tie-up will help the company leverage synergies between the two partners in many ways. Clients of Chola MS General Insurance can now benefit from the value-added services provided by Chola MS Risk Services to mitigate risks and save on insurance premium," Cholamandalam Chairman MA Alagappan said in a statement. |
| |
|
| |
