Fund shot ahead for StanChart's NBFC arm

Standard Chartered Bank will pump additional capital into Standard Chartered Investments and Loans (India) (SCILL). Part of the funds will be raised from the domestic market.

The 100 per cent owned non-banking finance subsidiary with a start-up capital of $ 50 million is understood to have lent up to its prudent limit, which at 8 times the capital, has crossed $400 million.

"We will need additional capital to grow," said Chris Low, CEO, Stanchart.

SCILL is registered as a non-public deposit taking NBFC, which can, unlike foreign banks, raise capital from the local market. To do so, it has already started the process of going for a credit rating.

Low said much of the business has come from large corporates and multinationals looking at buying out stake of promoters.

The middle-corporate market has doubled this year, he added.

Strategically SCILL supplements the growth of the foreign bank in the country, a major growth region for the Stanchart group. SCILL has helped strengthen relationships with growing wholesale bank customers.

The segment has seen a 16 per cent growth as the NBFC has offered liability and asset products to this profile of customers.