Stanchart To Sell Shimla, Darjeeling Units

Standard Chartered Grindlays has begun talks with a clutch of private banks to sell its Shimla and Darjeeling branches.

Both the retail branches have a deposit base of around Rs 90 crore each. Some private banks have already evinced interest in buying them out.

Standard Chartered officials, however, refused to comment on the issue saying that they did not want to speak on market speculation.

"We are actively looking at the proposals. However the cost-benefit analysis will have to be done. We will have to take into consideration the high-cost deposits in these branches," said a senior executive at one of the private banks which has been negotiating with Standard Chartered.

StanChart has been concentrating on corporate and consumer banking for the last few years. According to market observers, the customer profile of both these branches are very different as a large section of the customers are retired people.

The bank would not be able to cross-sell loans to these customers. The profitability of these branches could also be comparatively lower than the branches located in metros.

Standard Chartered and Standard Chartered Grindlays are also looking at unlocking the hidden value of the commercial and residential portfolio of real estates of both the banks spread across the country. It has already started selling off some off its residential properties.

Both the banks came into the country and moved into places where British government had their seats of power. They had acquired prime properties in Calcutta, Delhi, Kanpur, Srinagar, Darjeeling and Shimla. With the changes in the spending pattern and the commercial activities, the metros and mini metros have become new commercial centres.

The bank had recently signed an pact with J&K Bank to sell its Srinagar branch with all assets and liabilities including the employees. There could be a rationalisation of branches following the merger with Standard Chartered Grindlays. However, the process will take off around the third quarter of the next year.