StanChart plans 40 new branches this year

The bank is seeking to open 40 branches in the country during the current financial year. "We have applied to the Reserve Bank of India (RBI) for opening 40 new branches and 300 ATMs across the country in the current financial year," said Neeraj Swaroop, regional chief executive, India and South Asia, Standard Chartered Bank.

This number is significantly high, considering that the bank opened a mere 3 branches in the last two years. The bank has 83 branches and 231 ATMs across the country.

"As a foreign bank, its very difficult to get approval for this many branches. But we are optimistic and would be happy to execute our plans if we get the nod," he added.

The bank recently pumped $250 million into its Indian operations and this constitutes three-quarters of its profits in Asia.

"We invested $250 million to expand operations in India, taking the total capital base in the country to $1.9 billion," said Peter Sands, group chief executive, Standard Chartered.

"This will bolster the bank's capital adequacy to 10-11 per cent and support the growth of wholesale and consumer banking services," he added.

Speaking on the possibilities of acquisitions or mergers with other banks, Sands said that organic growth has always been the bank's key revenue driver and acquisitions and mergers would complement that growth.

"M&As have always been complementary to organic growth, which accounts for 80 per cent of our revenue growth. However, given an opportunity, we would consider M&As," he explained.

The bank registered a profit growth of 71 per cent to $690 million from its Indian operations in 2007, primarily on account of its wholesale banking business.

Commenting on the growth targets for this year, amid the global uncertainties, Sands said the bank would maintain a double digit growth in both profit and income.

"It would be a difficult year, simply on account of the higher share of storms sweeping the global financial markets. But we would like to register a double digit growth, both in terms of profitability and income," he explained.

Standard Chartered took a $300 million writedown in 2007 on its exposure to risky credit assets, a modest sum compared to losses at other major US and European banks. Sands played it down, saying, "The amount is insignificant compared to our global profit of $4 billion and income of $11 billion."

However the Group Chief Executive expects a fair amount of turmoil and volatility, at least in the next few months. "A lot of risk pricing and de-leveraging still needs to be done," he added while talking to reporters at the 150th anniversary celebrations of its Indian operations.